Since the publication of International Financial Reporting Standard (IFRS) 17 in May 2018, the insurance industry has begun the implementation process in advance of the original effective date of 1 January 2021. However, following the tentative decision of the International Accounting Standards Board (IASB) in late 2018, the effective date is likely to be postponed to at least 1 January 2022.
As the industry has begun to implement the Standard, a number of issues, both practical and theoretical in nature, have been raised. These issues have been brought to the attention of the IASB through the Transition Resource Group (‘TRG’), and also through industry bodies and groups such as the CFO Forum.
At its October 2018 meeting, the IASB agreed a set of criteria by which any proposed amendment to IFRS 17 would be assessed:
• Any amendment should not result in significant loss of useful information in respect of relevance and faithful representation, comparability and internal consistency and complexity and understandability; and
• Any amendment should not unduly disrupt implementations processes or risk undue delays to the effective date.
At the January 2019 IASB meeting, four of these issues were discussed and the IASB tentatively approved a number of amendments to the Standard. This paper by Milliman’s Thomas Bulpitt provides an overview of those amendments and the outcomes of the discussions.