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IFRS® Accounting Standards

Initial Application of IFRS 17 and IFRS 9―Comparative Information (Amendment to IFRS 17)

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IFRS 17 Insurance Contracts. The objective of this project is to help entities increase the usefulness of comparative information presented on initial application of IFRS 17 and IFRS 9 Financial Instruments

IFRS 17 and IFRS 9 have different requirements for comparative information:

  • IFRS 17 requires entities to present one restated comparative period. 
  • IFRS 9 permits but does not require restatement of comparative periods, and prohibits entities from applying IFRS 9 to financial assets derecognized in the comparative period. 

The proposed amendment is an optional classification overlay for financial assets to which IFRS 9 has not been applied in the comparative periods. Applying the proposed amendment, an entity would be permitted to present comparative information about such a financial asset as if the classification and measurement requirements of IFRS 9 had been applied to that financial asset.

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Davina Tam, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to June 2021

  • Approving project

    The IASB approved the project in June 2021

  • Consulting stakeholders

    IASB Exposure Draft issued in July 2021

    AcSB Exposure Draft, which corresponds to the IASB Exposure Draft, issued in August 2021

  • Deliberating feedback

    The IASB and AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

    The IASB issued the final amendment in December 2021

    The AcSB endorsed and incorporated into Canadian GAAP the IASB’s amendment to IFRS 17 Insurance Contracts. IFRS 17, including this amendment, is effective for annual reporting periods beginning on or after January 1, 2023.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.