Highlights
After several months of redeliberations, the International Accounting Standards Board (the Board) has published the final amendments to IFRS 17 Insurance Contracts.
Insurers now have just 18 months to get ready to present their opening balance sheet in accordance with IFRS 17. The finishing line is in sight so let’s keep up the pace.
Summary of amendments to IFRS 17
You can watch our video summarising the key amendments.
The following table takes a closer look at the key amendments by topic.
Topic | Key facts and impacts |
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Scope of IFRS 17 | |
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Measuring the contractual service margin (CSM) | |
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Transitioning to IFRS 17 |
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Accounting for direct participating contracts | |
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Accounting for reinsurance contracts held | |
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Presentation and disclosure requirements | |
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With these amendments, the Board is responding to the concerns and implementation challenges raised by insurers and other stakeholders, having monitored and supported IFRS 17 implementation since its publication in 2017.
Next steps
Insurers can now move ahead and apply the revised standard to get ready for transition.
Our updated publication First Impressions contains detailed analysis and insight on the amended standard. Speak to your usual KPMG contact to find out more about the Board’s deliberations.
Find out more
Also read our illustrative disclosures for insurers. This guide to annual financial statements intended to help insurers to prepare and present financial statements in accordance with IFRS Standards by illustrating one possible format for financial statements for a fictitious multinational insurer (the Group) that applies IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments. It has been updated to reflect the amendments to IFRS 17 published in June 2020 and other developments. The hypothetical reporting entity has been applying IFRS Standards for some time – i.e. it is not a first-time adopter.