Comparative Information on adoption of PBE IFRS 17

Comparative Information on adoption of PBE IFRS 17

We are currently seeking feedback on proposals to amend the transition requirements in PBE IFRS 17 Insurance Contracts. These proposals are relevant to Tier 1 and Tier 2 not-for-profit public benefit entities (NFP PBEs) applying PBE IFRS 17 for the first time. [1]

The ED proposes to incorporate the IASB’s recent amendments Initial Application of IFRS 17 and IFRS 9—Comparative Information.

The amendments will help NFP PBE insurers avoid temporary accounting mismatches between financial assets and insurance contract liabilities, due to the different transition requirements when first adopting PBE IFRS 17 and PBE IPSAS 41 Financial Instruments.

The proposed amendment is a transition option relating to comparative information about financial assets that may be useful when an entity:

  • first applies PBE IFRS 17 and PBE IPSAS 41 at the same time; or
  • has applied PBE IPSAS 41 before adopting PBE IFRS 17.

[1] In July 2019 the NZASB issued PBE IFRS 17 with an effective date of 1 January 2023. The PBE Standard was based on NZ IFRS 17 Insurance Contracts because the IPSASB has no current intention of developing an IPSAS for insurance contracts. PBE IFRS 17 is currently applicable only to NFP PBEs. An exposure draft on Public Sector Insurance  is expected to be issued in March 2022. 

Your feedback is important

We are keen to hear from preparers, readers of PBE financial reports and other stakeholders, to ensure  the proposed amendments result in appropriate reporting outcomes for not-for-profit reporting entities in Aotearoa New Zealand.

Consultation Document

pdf Invitation to Comment NZASB ED 2022-1

pdf Exposure Draft NZASB ED 2022-1 

Commenting on the Proposals

Comments are due by 27 May 2022 and can be provided using the form below.

We intend on publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 2020 also applies.