Insurance – IFRS 4 amendments set for balloting

Insurance – IFRS 4 amendments set for balloting

This IFRS newsletter brings you the latest on the IASB's insurance project.


KPMG AG Wirtschaftsprüfungsgesellschaft


Related content

KPMG IFRS Insurance topic image: crowd crossing a street carrying open umbrellas

We examine the latest developments and what the discussions could mean for you.

The IASB has finished its discussions on the differing effective dates of IFRS 9 and the forthcoming insurance contracts standard.

The Board addressed all remaining issues at its May meeting, the last time that it expects to discuss the exposure draft Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (the ED).


“The decisions taken this month would allow a broader array of entities to benefit from the amendments.”


For a detailed discussion of these developments, read Issue 54 of our IFRS Newsletter: Insurance. Previous issues can be found on our Newsletters page. 

Temporary exemption

The IASB agreed to a grace period for entities that apply the temporary exemption and subsequently cease to be eligible for it, to give them time to implement IFRS 9. These entities would apply IFRS 9 in the second annual reporting period that begins after the change in eligibility.

The Board also agreed to permit entities that are not eligible for the temporary exemption at the initial assessment date to reassess their eligibility before the mandatory effective date of IFRS 9 if there is a change in their corporate structure that could result in a change in the predominant activities of the entity.

Other target areas

The IASB confirmed that it would permit first-time adopters of IFRS to apply the temporary exemption and overlay approach if they meet the eligibility requirements and qualifying criteria.

It also provided relief for investors in associates and joint ventures from the requirement to apply uniform accounting policies if either investor or investee applies the temporary exemption, but the other does not.

The Board also confirmed a fixed expiry date for the temporary exemption of 1 January 2021.

Next steps

The Board agreed that the due process requirements have been met and granted the staff permission to begin the balloting process. The final amendments to IFRS 4 are currently expected to be published in September 2016.

Meanwhile, the Board is also continuing its balloting process for the forthcoming insurance contracts standard and expects to issue it around the end of 2016.

Visit our IFRS – Insurance hot topics page for the latest developments in the insurance contracts project.

© 2016 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 15 Canada Square, London, E14 5GL, UK.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform