During its October meeting, the International Accounting Standards Board (Board) discussed feedback it has received from stakeholders about the new insurance contracts Standard, IFRS 17. This feedback has allowed the Board and its technical staff to better understand the concerns relating to the implementation of IFRS 17, and whether further steps, including possible standard-setting, is required.
The Board remains committed to helping insurers implement the new Standard and has previously stated that it will respond to implementation challenges if required. In the October meeting, the Board considered whether to respond to the feedback received but was not asked by staff to make decisions about whether to propose any changes to the Standard.
At this meeting, the Board agreed on the criteria it will use in evaluating potential changes to IFRS 17, namely that any changes should not:
- result in less useful information for investors;
- disrupt existing implementation processes; and
- risk undue delays in the effective date of a Standard that is much-needed to address inadequacies in the current wide range of insurance accounting practices.
The Board will discuss whether there is a need to propose changes to IFRS 17 in the coming months. It is too early to say whether these discussions will result in any proposals to change the Standard.
If any changes were to be proposed, the Board will follow its normal due process for standard-setting, which includes a public consultation.