On November 14, 2018, the IASB Board agreed to start the process to amend IFRS 17 to defer the mandatory effective date of IFRS 17 by one year. Subject to IASB due process, entities will be required to apply IFRS 17 for annual periods beginning on or after the January 1, 2022. The Board noted that given its plans to consider whether to explore amendments to IFRS 17, and in light of the criteria for assessing them, any such potential amendments could take a year to finalize. Therefore, a one year deferral of the effective date is appropriate. The Board noted that limiting the deferral to one year would minimize disruption to entities that are furthest advanced in implementation, address users’ concerns that adoption of IFRS 17 and IFRS 9 not be significantly delayed, and provide a clear signal to the industry that it should not stop implementation projects.
As a consequence of the IFRS 17 deferral, the Board also agreed to revise the fixed expiry date of the temporary exemption from IFRS 9 in IFRS 4 to allow entities to continue applying the temporary exemption from IFRS 9 until January 1, 2022.
The views in this In transition are based on our observations from the November 14 meeting, and they might differ in some respects from the official minutes of the meeting to be published by the IASB at a later date.
US Insurance Practice Leader, PwC US
Richard de Haan
Global Actuarial Leader, PwC US
Managing Director, National Professional Service Group, PwC US