IASB proposes to amend the effective date of IFRS 17 and extend the temporary exemption of IFRS 9 for insurers

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In transition , PwC US Nov 15, 2018

The IASB will start the process to amend both the effective date of IFRS 17 and extend the temporary exemption in IFRS 4 for application of IFRS.

Overview

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.

To have a deeper discussion, contact:

Donald Doran

Partner, National Professional Services Group, PwC US

Email

Marie Kling

Partner, National Professional Service Group, PwC US

Email

Mary Saslow

Managing Director, National Professional Service Group, PwC US

Email

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Matt Adams

Matt Adams

US Insurance Practice Leader, PwC US

David Schenck

David Schenck

US Insurance Tax Leader , PwC US

Richard de Haan

Richard de Haan

Global Actuarial Leader, PwC US

Mary Saslow

Mary Saslow

Managing Director, National Professional Service Group, PwC US

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