At the March 14, 2019 IASB meeting, the Board evaluated whether the remaining concerns and implementation challenges -dealing with level of aggregation, scope, consequential disclosure requirements of previously proposed amendments, and remaining concerns on transition - meet the criteria for amending the standard. The Board agreed to retain the current requirements on level of aggregation as it believes this contributes to one of the main objectives of IFRS 17. The Board agreed to propose to exclude from the scope of IFRS 17 credit card contracts that provide insurance coverage if they meet specified criteria. The Board also agreed to propose some relief to meet preparer’s concerns that past risk mitigation activity relating to participating contracts would not be appropriately captured at transition by agreeing to two proposed amendments. Finally, as a result of proposed changes previously agreed by the Board relating to coverage unit and acquisition cost recognition, the Board also agreed to propose additional disclosures.
The Board expects to assess the total package of proposed amendments against the previously agreed criteria at its April meeting, with the goal of issuing an exposure draft (possibly with a shortened exposure period from the typical 120 days) around the end of June 2019. The expected timeframe for issuance of final amendments, considering the due process required, is normally 12 to 18 months from the date of the exposure draft.
The views in this In transition are based on our observations from the 14 March 2019 meeting, and they might differ in some respects from the official report of the meeting that will be published by the IASB in IASB Update at a later date
US Insurance Industry Leader, PwC US
Tel: +1 (617) 530 6203
US Insurance Practice Leader, PwC US
Tel: +1 (646) 471 8688
Richard de Haan
US Life Actuarial Leader, PwC US
Tel: +1 (646) 471 6491
Managing Director, National Professional Service Group, PwC US