On December 13, 2018 the IASB continued to discuss concerns and implementation challenges raised by stakeholders on IFRS 17. The IASB agreed to propose one narrow-scope amendment to require presentation of insurance contracts on the balance sheet at the portfolio level rather than at the grouping level used for contract measurement purposes.
The meeting covered 12 other implementation challenges, for which the IASB agreed not to amend the standard given that the concerns did not meet the agreed upon criteria for potential amendment. These criteria include whether amending the requirements could cause a significant loss of useful information relative to that which would be provided by IFRS 17 for users of the financial statements, unduly disrupt implementation processes that are already under way, or risk undue delays in the effective date. In addition, the Board agreed that the concern related to prospective application at transition of the risk mitigation exception in the variable fee approach should be discussed along with interrelated concerns on transition at a future meeting.
The views in this In transition are based on our observations from the December 13, 2018 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