IASB clarifies certain IFRS 17 requirements through its annual improvement amendment process
The IASB agreed to make clarifying amendments to IFRS 17, ensuring that the words in the standard reflect the decisions made by the Board during deliberations.
Overview
On 21 June 2018 the IASB Board agreed to make clarifying amendments to IFRS 17, ‘Insurance Contracts’, to ensure that the words in the standard reflect the decisions made by the Board during its deliberations. The Board agreed to clarify that, for contracts subject to the variable fee approach, the determination of coverage period and quantity of benefits should include investment-related services in addition to insurance coverage. The Board also agreed to clarify that the consequential amendment in IFRS 3, ‘Business Combinations’, on the classification of insurance contracts applies prospectively; and, separately, that business combinations under common control are excluded from the scope of the requirements for business combinations in IFRS 17. Several other clarifying amendments were also approved on other topics.
The views in this In transition are based on our observations from the 21 June 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.
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