When transitioning to IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments, significant accounting mismatches may arise between financial assets and insurance contract liabilities in the comparative information.
The International Accounting Standards Board (the Board) is proposing a narrow-scope amendment to IFRS 17 to alleviate the potential mismatches. This would provide an option to present comparative information about financial assets on a basis that is more consistent with how IFRS 9 will be applied in future reporting periods using a classification overlay approach, without unnecessarily disturbing the implementation processes for both IFRS 17 and IFRS 9.
The Board will shortly publish an exposure draft with a 60-day comment period.
Read our web article and prepare to submit a comment letter to the exposure draft.
Get in touch
For further information on IFRS 17 implementation, please contact Brian Morrissey or Niall Naughton of our Insurance team. We'd be delighted to hear from you.