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

  • Consulting stakeholders

    IASB Exposure Draft issued in June 2019

    AcSB Exposure Draft, which corresponds to the IASB Exposure Draft, issued in July 2019

    AcSB held a number of outreach events throughout July and September 2019

  • Deliberating feedback

    The IASB and AcSB are deliberating comments on their Exposure Drafts

    The IASB is expected to issue final amendments mid 2020

  • Final pronouncement

Experts Talk! New Insurance Standard

featuring Darrel Scott, IASB member and
other experts from the financial reporting community

In Brief

Overview of AcSB’s ongoing work in supporting the implementation of the new insurance standard

Meeting & event summaries


October 3, 2019

AcSB Decision Summary – September 17-18, 2019

The AcSB met with representatives from the Canadian Institute of Actuaries (CIA) to better understand the CIA’s work in supporting the implementation of IFRS 17 Insurance Contracts. The Board is committed to working together with the CIA to assist entities in applying the new insurance contract standard.

The AcSB also met with an external party that assists Canadian entities with IFRS 17 systems implementation to better understand the current landscape and the challenges these entities face.

In addition, the AcSB discussed its response letter to the International Accounting Standards Board’s (IASB) Exposure Draft, “Amendments to IFRS 17,” after considering the feedback it received from stakeholders through its extensive outreach activities. The Board decided on the key matters to raise with the IASB and directed staff to make amendments based on its comments. The Board’s response letter was sent to the IASB by the September 25, 2019, deadline.

July 17, 2019

AcSB Decision Summary – July 17, 2019

Insurance Contracts

The AcSB received an update on international developments relating to IFRS 17 Insurance Contracts. The Board discussed the proposed amendments to the standard in preparation for its outreach activities with IASB member, Darrel Scott. These activities included:

  • hosting a panel discussion on July 18, 2019, featuring Mr. Scott and other experts from the financial reporting community (video recording available);
  • consulting with the Board’s Insurance Transition Resource Group; and
  • undertaking targeted outreach with Canadian stakeholders.

The AcSB will also hold two virtual roundtables on September 5 and 11, 2019, for Canadian stakeholders across Canada to provide input on the proposed amendments to IFRS 17.

 

June 18, 2019

AcSB Decision Summary – June 18, 2019

An education session was held on the expected proposed amendments to IFRS 17 Insurance Contracts. No decisions were made.

The AcSB also discussed and approved a plan to respond to the International Accounting Standards Board’s (IASB) upcoming exposure draft on amendments to IFRS 17. The plan includes outreach activities in July 2019 with Darrel Scott, IASB member and advisor on the IASB’s insurance project.

The Board is sponsoring this activity as part of its ongoing work to ensure Canadians are supported during the implementation phase of new standards, and to ensure Canadian views are heard. 

The AcSB’s outreach activities on the IASB’s exposure draft include:

  • hosting a panel discussion on July 18, 2019 featuring Darrel Scott and other experts from the financial reporting community;
  • consulting with the Board’s Insurance Transition Resource Support Group;
  • undertaking targeted outreach with Canadian stakeholders; and
  • holding a virtual roundtable early September for Canadian stakeholders across Canada to provide input on the proposed amendments to IFRS 17.

May 15, 2019

AcSB Decision Summary – May 15, 2019

The AcSB received an update on international developments of IFRS 17 Insurance Contracts, including summaries of the March 26 AcSB Insurance Transition Resource Group meeting and the May 14-16 discussion at the International Accounting Standards Board (IASB) meeting.

The IASB is expected to issue an exposure draft of proposed amendments to IFRS 17 by the end of June 2019. The AcSB briefly discussed outreach activities it intends to conduct to obtain feedback from stakeholders in mid-July for a forthcoming exposure draft. The Board will be sponsoring a visit from Darrel Scott, an IASB member and IASB advisor on insurance, to participate in the AcSB’s outreach activities. The AcSB Chair, along with representatives from Europe, will be participating on an insurance panel in Hong Kong discussing the implementation and endorsement process. The Board will consider a formal plan to respond to the IASB’s exposure draft at its next meeting.

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.

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


October 3, 2019

News

AcSB Response – Amendments to IFRS 17

On September 25, 2019, the AcSB responded to the IASB’s Exposure Draft, issued in June 2019. We encourage the IASB to move quickly to finalize IFRS 17, as the standard is expected to benefit the global capital markets. A common global adoption date of IFRS 17 is critical to the success of transitioning to the new insurance contract standard. Read our letter to find out more!

July 25, 2019

News

Video – Experts Talk! New Insurance Standard featuring Darrel Scott, IASB member, and other experts from the financial reporting community

On July 18, 2019, Linda Mezon, AcSB Chair, moderated a panel discussion on IFRS 17. Watch the video recording and download the slides to learn more about the conversations around the proposed amendments to the standard.

July 17, 2019

Document for Comment

AcSB Exposure Draft – Amendments to IFRS 17

The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by September 25, 2019.

July 16, 2019

News

Virtual Roundtable Discussions – Stakeholders’ Views Sought on the Proposed Amendments to the New Insurance Standard

The AcSB is holding virtual roundtable discussions to seek input on the IASB’s Exposure Draft, “Amendments to IFRS 17.” Complete the registration form to attend one of the virtual roundtables and share your views!

June 27, 2019

News

IASB Exposure Draft – Amendments to IFRS 17

The IASB has issued an Exposure Draft proposing amendments to IFRS 17 Insurance Contracts. Canadian stakeholders are encouraged to submit their comments to the IASB by September 25, 2019.

June 21, 2019

Resource

In Brief – The AcSB’s Ongoing Work in Supporting the Implementation of the New Insurance Standard

Learn more about the activities that the AcSB undertakes to support Canadians in the implementation of the new insurance standard, and ensure Canadian views are heard!

June 14, 2019

News

Experts Talk! New Insurance Standard – July 18, 2019

Registration is now open! Linda Mezon, AcSB Chair will be moderating an IFRS 17 panel discussion, featuring Darrel Scott, IASB Board Member and Advisor on the IASB’s Insurance project, and other experts from the financial reporting community. Come join us in Toronto, or via livestream for those outside the city, and listen to what the experts have to say about the upcoming proposals on IFRS 17.

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.