AcSB

Amendments to IFRS 17 Insurance Contracts

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project that considers possible amendments to IFRS 17 Insurance Contracts.

The objective of this project is to consider stakeholder concerns and implementation challenges raised since the issuance of IFRS 17, and determine whether there is a need to amend the standard.

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, CPA (Illinois)

Senior Principal, Accounting Standards Board

Davina Tam, CPA, CA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to November 2018

  • Approving project

    The IASB approved the project in November 2018

    The IASB is expected to issue an Exposure Draft in Q2 2019

  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement

Meeting & event summaries


January 15, 2019

AcSB Decision Summary – January 15, 2019

AcSB Decision Summary – January 15, 2019

The AcSB received an update on international developments of IFRS 17 Insurance Contracts, including the upcoming discussion at the January 23, 2019, International Accounting Standards Board (IASB) meeting.

At its meetings on November 14 and December 13, 2018, the IASB tentatively decided to propose the following amendments to IFRS 17, subject to public consultation; that:

  • the mandatory effective date of IFRS 17 be deferred by one year, so that entities would be required to apply IFRS 17 for annual periods beginning on or after January 1, 2022;
  • the fixed expiry date for the temporary exemption in IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments be amended so that all entities would be required to apply IFRS 9 for annual periods beginning on or after January 1, 2022; and
  • the presentation of insurance contract assets and liabilities in the statement of financial position is determined using portfolios of insurance contracts rather than groups of insurance contracts.

The IASB and the AcSB will expose the proposed amendments to seek stakeholders’ comments once the IASB completes its deliberations. As part of its strategic plan, the AcSB will continue to monitor developments on IFRS 17 and is committed to assisting Canadian stakeholders in adopting this complex new insurance contracts standard.

December 12, 2018

AcSB Decision Summary – December 12, 2018

The AcSB received an update on international developments of IFRS 17 Insurance Contracts, including the discussion during the November 14-15 IASB meeting and discussions at the December 6-7 Accounting Standards Advisory Forum meeting.

The Board was also notified of the upcoming IFRS 17 discussion at the December 13 IASB meeting.

The Board will continue to monitor developments.

November 12, 2018

AcSB Decision Summary – November 12-13, 2018

The AcSB received an update on international developments of IFRS 17 Insurance Contracts, including the recent discussions during the October IASB meeting. The Board was also notified of the upcoming discussion of IFRS 17 at the November 14 IASB meeting.

The Board will continue to monitor developments.

September 20, 2018

AcSB Decision Summary – September 20-21, 2018

The Board received an update on international developments and Canadian implementation concerns with IFRS 17. The implementation concerns relate to reinsurance, mutual entities, contractual service margin amortization and balance sheet presentation requirements. The Board will continue to actively monitor global developments and has requested an update at each meeting.

July 17, 2018

AcSB Decision Summary – July 17, 2018

The Board discussed implementation concerns its Insurance Transition Resource Group raised regarding IFRS 17 Insurance Contracts. The issues related to insurance contracts with investment components, mutual entities and reinsurance. The Board made no decisions.

May 15, 2018

AcSB Decision Summary – May 15, 2018

The Board received an update on the implementation of IFRS 17 Insurance Contracts, including a summary of the AcSB Insurance Transition Resource Group meeting of April 25, 2018. The Board also discussed a demographic overview of Canadian and foreign insurance entities operating in Canada, including type of entity (life, property, casualty, etc.), size (revenues, assets) and accounting frameworks applied. The Board made no decisions.

News


November 20, 2018

News

IASB to propose one-year deferral of IFRS 17

At its November meeting, the International Accounting Standards Board (IASB) voted to propose a one-year deferral of IFRS 17 Insurance Contracts, and as a result, has also proposed to extend the temporary exemption of applying IFRS 9 Financial Instruments by one year to keep the effective dates aligned. The IASB and the AcSB will expose the proposed deferral to seek stakeholders’ comments. As part of the AcSB’s strategic plan, the Board will continue to monitor developments on IFRS 17 and is committed to assisting Canadian stakeholders in adopting this complex new insurance contracts standard.

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 ballot process.