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IFRS 17 presentation requirements were amended such that the presentation of insurance contracts and reinsurance contracts would be at a portfolio level, rather than based on groups of insurance contract assets and insurance contract liabilities separately. To coincide with this new effective date, an amendment has also been made to the previous insurance standard, IFRS 4 Insurance Contracts. But we recommend to avoid a significant increase of implementation cost and instead focus on using the delay to implement IFRS 9/17 in a better and smarter way without spending significantly more money. The Board also decided to extend the exemption currently in place for some insurers regarding the application of IFRS 9 (Financial Instruments) to enable them to implement both IFRS 9 and IFRS 17 at the same time. The additional time will also be welcome as insurers consider how they can use IFRS 17 to tell a clearer and more understandable story about their company.”  The delay will ease pressure on delivering the transition. This amendment is for groups of insurance contracts without direct participation features that would otherwise be subject to IFRS 17’s general measurement model. The constant pressure to deliver value for money, the role of the private sector in service delivery and intense public scrutiny all represent challenges and opportunities for public sector organisations in central government, local government and... 200 UK and international real estate specialists advising clients on domestic and international assurance, tax and transactional matters. 3z& (,23$ dqdo\]hv wkh ehqhilwv ri ,)56 ,qvxudqfh &rqwudfwv (,23$ fduulhg rxw wkh dqdo\vlv lq oljkw ri wkh xsfrplqj lpsohphqwdwlrq ri ,)56 wr irvwhu d ehwwhu xqghuvwdqglqj ri wkh Link to Fitch Ratings' Report(s): IFRS 17: Delay Buys Time for Insurers Fitch Ratings-London-22 March 2019: The delay to the implementation of a new accounting standard, IFRS 17, will allow insurers and reinsurers to reduce operational risks, Fitch Ratings says in a new report. Most importantly, EFRAG believes that the effective date of IFRS 17 should be postponed to 1 January 2023, however, early application should be permitted so that companies can apply the standard before that date. However, insurers seeking to delay their implementation efforts will experience resourcing strains due to a shrinking talent pool. IFRS 17 Insurance Contracts was issued by the International Accounting Standards Board (Board) on 18 May 2017. IFRS 17 Insurance Contracts was issued by the International Accounting Standards Board (Board) on 18 May 2017. Subscribe to receive the latest BDO News and Insights, This site uses cookies to provide you with a more responsive and personalised service. IFRS 17 is effective for annual reporting periods beginning on or after 1 January 2022, which represents a delay of 1 year from the original effective date of 1 January 2021 which was set when the Standard was first published. IFRS 17 will fundamentally change the accounting for all entities that issue contracts within the scope of the standard for insurance contracts. While the majority of insurers believe IFRS 17 is crucial to the survival of the industry, there are many challenges to overcome in order to achieve compliance before the new deadline. The IASB is expected to issue the amendments to IFRS 17 around the middle of the year. It has today decided that the effective date of the Standard will be deferred to annual reporting periods beginning on or after 1 January 2023. Insurers are asking what this means for their implementation efforts and how best to respond. We’re a network of firms in 157 countries with more than 223,000 people who are committed to delivering quality in assurance, advisory and tax services. Our view is that most insurers will welcome the extra year, which will enable them to implement IFRS 17 in a more controlled fashion. 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