The International Accounting Standards Board (the Board) is seeking suitable candidates for membership of the Transition Resource Group on IFRS 17 Insurance Contracts (the TRG).
The Board issued the completed IFRS 17 in May 2017.
The new Standard represents a fundamental change to existing practice for most entities issuing insurance contracts and is therefore expected to require significant implementation effort. In view of the magnitude of the change, the Board will support implementation of IFRS 17 through a variety of activities—including a TRG.
The TRG will discuss questions from stakeholders about the new accounting requirements in IFRS 17. The purpose of the TRG is to:
- provide a public forum for stakeholders to follow the discussion of questions raised on implementation; and
- inform the Board in order to help the Board determine what, if any, action will be needed to address those questions. Possible actions include providing supporting materials such as webinars, case studies, and/or referral to the Board or Interpretation Committee.
Terms of reference
The aim of the TRG is to facilitate a public discussion to provide support for stakeholders and information to the Board on implementation questions arising from the application of IFRS 17. The TRG will have a limited life during the transition period to the new requirements. Meetings will be scheduled to take into account the need to allow for an initial period for interested parties to become familiar with the Standard and for a period of stability prior to the mandatory effective date of IFRS 17. During that period of stability entities will be finalising their implementation activities on IFRS 17.
Questions discussed by the group should meet the following criteria:
- must be related to, or arise from, IFRS 17;
- may result in possible diversity in practice; and
- are expected to be pervasive, ie relevant to a wide group of stakeholders.
During meetings, TRG members will be expected to share their own views on the questions submitted. The group will not be expected to discuss questions that are solely actuarial in nature. The group will not issue any guidance.
Criteria for membership
To meet the TRG’s objectives, candidates should be capable of making a positive contribution to the TRG by having practical and direct knowledge of the ongoing implementation of IFRS 17. They should also be able to consider different perspectives and have an ability to participate in a free exchange of ideas.
We are looking for candidates with expertise in product types across a broad spread of geographical areas. The TRG meetings will be conducted in English, and candidates will be expected to communicate effectively in that language. Because of the focus on accounting implementation questions, preference will be given to candidates who are preparers or auditors. The TRG will be limited in size to ensure effective discussion and debate. The TRG will have around 13 members and 3 observers. The observers will be from prudential and securities regulators. Consequently, not every applicant will be invited to join the group.
The TRG meetings will be held in London and will be conducted in public. Members are expected to attend the meetings in person. Members will be acting in their personal capacity, and substitutes will not be accepted if, or when, members are not able to attend. Members shall serve on a voluntary, unpaid basis. Members are responsible for their own travel and accommodation costs of attending the meetings.
The deadline for TRG membership applications was on 31 July 2017. Further details about the TRG will be announced by the end of September 2017.