The IASB finalizes its discussions on IFRS 17 reported concerns and implementation challenges

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In transition , PwC US Mar 15, 2019

The IASB retains the level of aggregation requirements in IFRS 17, agrees to propose to scope credit cards out of the Standard and to propose some amendments to transition and disclosures.

Overview

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

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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Greg Galeaz

US Insurance Industry Leader, PwC US

Tel: +1 (617) 530 6203

Matt Adams

US Insurance Practice Leader, PwC US

Tel: +1 (646) 471 8688

David Schenck

US Insurance Tax Leader , PwC US

Tel: +1 (202) 549 9412

Richard de Haan

US Life Actuarial Leader, PwC US

Tel: +1 (646) 471 6491

Mary Saslow

Managing Director, National Professional Service Group, PwC US

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