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Insurance – Transition to IFRS 17

Insurance – Transition to IFRS 17

The IASB's Transition Resource Group discusses implementation questions from stakeholders

The IASB's Transition Resource Group discusses implementation questions from stakeholders

Making sense of the requirements

The new insurance contracts standard, IFRS 17 Insurance Contracts, continues to raise a variety of implementation questions from stakeholders.

To help support implementation and reduce the potential for diversity in practice, the IASB has set up a Transition Resource Group (TRG), which held its third substantive meeting on 26–27 September 2018. 

The TRG does not have standard-setting authority, and its purpose is to provide a public forum for stakeholders to follow the discussion of questions raised on implementation. Visit the IASB website for further details.

 

What's the latest on IFRS 17 implementation?

At its November 2018 meeting, the Board tentatively decided to propose that the mandatory effective date of IFRS 17 be deferred by one year to 2022.

They also tentatively decided to propose that the fixed expiry date for the optional temporary exemption from applying IFRS 9 Financial Instruments, granted to insurers meeting certain criteria, also be deferred by one year to 2022.

Read our web article to find out more.

 

What happened at the September 2018 TRG meeting?

TRG members discussed several questions submitted by stakeholders, including:

  • annual cohorts for contracts that share in the return of a specified pool of underlying items;
  • determining discount rates using a top-down approach;
  • cash flows outside the contract boundary on initial recognition; 
  • ceding commissions and reinstatement premiums; and
  • accounting for group insurance policies.

Read our summary for a high-level overview of all topics and our observations in the articles below. You may also be interested in our summaries of the February and May 2018 TRG meeting discussions. 

 

Next steps

The IASB will be informed of the TRG members’ discussion. 

This is expected to help the Board determine what, if any, action is needed to address the implementation questions discussed. 

The next TRG meeting is scheduled for 4 April 2019. Bookmark this web page, where you will find our observations of all future meetings. We encourage you to speak to your local KPMG contact about the outcomes of this meeting and how they may impact you.


Find out more

For KPMG's insights on transitioning to the new standard, visit kpmg.com/ifrs17.

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