Amendments to IFRS 17
The International Accounting Standards Board (IASB) has recently issued for comment ED/2019/4 Amendments to IFRS 17 (the ED).
The ED addresses some concerns and challenges raised by stakeholders currently undertaking implementation activities. The IASB has concluded that the potential costs of proposing targeted amendments to IFRS 17 Insurance Contracts could be justified if those amendments would provide meaningful support to entities implementing the Standard and if those amendments:
- would not change the fundamental principles of the Standard because that would result in a significant loss of useful information for users of the financial statements relative to that which would otherwise result from applying IFRS 17; and
- would avoid unduly disrupting implementation already under way or risking undue delays in the effective date of IFRS 17.
The ED proposes targeted amendments to IFRS 17 relating to the following topics:
- scope exclusions – credit card contracts and loan contracts that meet the definition of an insurance contract;
- expected recovery of insurance acquisition cash flows;
- contractual service margin attributable to investment-return service and investment-related service;
- reinsurance contracts held – recovery of losses on underlying insurance contracts;
- presentation in the statement of financial position;
- applicability of the risk mitigation option;
- effective date of IFRS 17 and the IFRS 9 Financial Instruments temporary exemption in IFRS 4;
- transition modifications and reliefs; and
- minor amendments.
The XRB Board is committed to adopting international standards in the for-profit sector. Generally, once a standard has been issued by the IASB, the NZASB then issues the New Zealand equivalent standard without further consultation.
Commenting on the Proposal
This is your opportunity to comment on these proposals.
Comments are due to the NZASB by 26 August 2019 and to the IASB by 25 September 2019.
Send your comments—both formal and informal— to the NZASB using the secure upload form below.
We also encourage you to send comments directly to the IASB, with a copy to the NZASB. Your comments can be made electronically to the IASB website by clicking on the following link https://www.ifrs.org/projects/open-for-comment/. First-time users must register with IASB to submit electronically.
Upload your submission here
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