This IFRS newsletter brings you the latest on the IASB’s insurance project.
In February, the IASB addressed issues arising from the feedback
it received from the external testing and drafting process of the forthcoming insurance contracts standard (draft IFRS 17).
It made decisions on a level of aggregation exemption, recognition of changes in estimates and the release of the CSM, as well as other sweep issues.
“With the decisions in February, the publication of IFRS 17 is right around the corner.”
The IASB has agreed an exemption from the level of aggregation requirements where law or regulation specifically constrains the pricing or level of benefits of a contract.
Changes in estimates of the present value of future cash flows arising from
non-financial risks, including those that are directly caused by experience
adjustments, would adjust the contractual service margin (CSM). Further, the
definition of an experience adjustment would exclude investment components.
The IASB has confirmed its previous proposal that the amount of the CSM recognised in profit or loss in each period would be determined after all other adjustmentshave been made to the CSM.
The IASB also addressed various observations from the review of the draft of IFRS 17 by the Board and external reviewers.
The staff are continuing the drafting process and expect to issue IFRS 17 in May 2017.
Visit our IFRS – Insurance hot topics page for the latest developments in the insurance contracts
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