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IFRS® Accounting Standards

Amendments to IFRS 17 Insurance Contracts

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project that considers possible amendments to IFRS 17 Insurance Contracts.

The objective of this project is to consider stakeholder concerns and implementation challenges raised since the issuance of IFRS 17, and determine whether there is a need to amend the standard.

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS® Standards for publicly accountable enterprises.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Davina Tam, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to November 2018

  • Approving project

    The IASB approved the project in November 2018

  • Engaging Communities

    IASB Exposure Draft issued in June 2019

    AcSB Exposure Draft, which corresponds to the IASB Exposure Draft, issued in July 2019

    AcSB held a number of outreach events throughout July and September 2019

  • Deliberating feedback

    The IASB and AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

    The IASB issued the final amendments in June 2020

    The AcSB endorsed and incorporated into Canadian GAAP the IASB’s amendments to IFRS 17 Insurance Contracts, which include deferring the effective date of IFRS 17 to annual reporting periods beginning on or after January 1, 2023

    The AcSB also endorsed and incorporated into Canadian GAAP the IASB’s amendments to IFRS 4 Insurance Contracts to extend the temporary exemption of applying IFRS 9 to 2023 for qualifying entities

Experts Talk! New Insurance Standard

featuring Darrel Scott, IASB member and other experts from the financial reporting community

In Brief

Overview of AcSB’s ongoing work in supporting the implementation of the new insurance standard

News


November 2, 2020

News

AcSB endorses Amendments to IFRS 17 and Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)

The amendments are now in Part I of the CPA Canada Handbook – Accounting. The amendments include deferring the effective date of IFRS 17 Insurance Contracts to January 1, 2023 and extending the temporary exemption of applying IFRS 9 Financial Instruments by two years to keep the effective dates aligned.

June 30, 2020

International Activity

Update – IASB issues amendments to IFRS 17

The IASB issued the amendments to IFRS 17 Insurance Contracts, with the effective date of the standard deferred to January 1, 2023, and the temporary exemption of applying IFRS 9 extended by two years to keep the effective dates aligned. The AcSB will ballot the final amendments and complete its endorsement process in Q4 2020.

March 19, 2020

International Activity

IASB votes to defer the effective date of IFRS 17 by two years

The IASB voted to defer the effective date of IFRS 17 to annual reporting periods beginning on or after January 1, 2023. It also voted to extend the temporary exemption of applying IFRS 9 by two years to keep the effective dates aligned. The AcSB welcomes these decisions as they support achieving a common global adoption date. The AcSB encourages Canadian stakeholders to continue with their implementation efforts to ensure a high-quality implementation of IFRS 17.

October 3, 2019

International Activity

AcSB Response – Amendments to IFRS 17

On September 25, 2019, the AcSB responded to the IASB’s Exposure Draft, issued in June 2019. We encourage the IASB to move quickly to finalize IFRS 17, as the standard is expected to benefit the global capital markets. A common global adoption date of IFRS 17 is critical to the success of transitioning to the new insurance contract standard. Read our letter to find out more!

July 25, 2019

News

Video – Experts Talk! New Insurance Standard featuring Darrel Scott, IASB member, and other experts from the financial reporting community

On July 18, 2019, Linda Mezon, AcSB Chair, moderated a panel discussion on IFRS 17. Watch the video recording and download the slides to learn more about the conversations around the proposed amendments to the standard.

June 27, 2019

International Activity

IASB Exposure Draft – Amendments to IFRS 17

The IASB has issued an Exposure Draft proposing amendments to IFRS 17 Insurance Contracts. Canadian stakeholders are encouraged to submit their comments to the IASB by September 25, 2019.

November 20, 2018

International Activity

IASB to propose one-year deferral of IFRS 17

At its November meeting, the International Accounting Standards Board (IASB) voted to propose a one-year deferral of IFRS 17 Insurance Contracts, and as a result, has also proposed to extend the temporary exemption of applying IFRS 9 Financial Instruments by one year to keep the effective dates aligned. The IASB and the AcSB will expose the proposed deferral to seek stakeholders’ comments. As part of the AcSB’s strategic plan, the Board will continue to monitor developments on IFRS 17 and is committed to assisting Canadian stakeholders in adopting this complex new insurance contracts standard.

Meeting & event summaries


July 28, 2020

AcSB Decision Summary – July 28, 2020

The AcSB received an update on international developments relating to IFRS 17 Insurance Contracts, noting that the International Accounting Standards Board (IASB) plans to develop additional educational material for the amendments to IFRS 17 issued in June 2020.

The AcSB supports the revised effective date and plans to complete its endorsement process for the amendments, incorporating them into Part I of the CPA Canada Handbook – Accounting no later than November 2020.

The AcSB also discussed next steps to support IFRS 17 implementation in Canada. The Board continues to maintain dialogue with industry stakeholders and other national standard setters. Given the standard is now finalized, the Board encourages entities to focus on implementation. The Board will continue to operate its Insurance Transition Resource Group to discuss and raise awareness of implementation matters to help entities adopt IFRS 17 in Canada. The Group’s next meeting will be posted on the Group’s webpage once scheduled.

March 3, 2020

AcSB Decision Summary – March 3-4, 2020

The AcSB received an update on international developments relating to IFRS 17 Insurance Contracts, including the discussions at the IASB’s meetings from January to February 2020 and the planned discussions at the March meeting. The Board is focused on achieving a common global adoption date and acknowledges that the recommendation cited in the March IASB staff paper (AP2A) aligns with that goal.

The AcSB explored what options could be available to support achieving a common global adoption date. The Board will discuss these further after the IASB’s meeting on March 17-19, 2020.

The AcSB also discussed its endorsement process for the IASB’s amendments to IFRS 17, as it expects the amendments to be issued mid-2020. IFRS 17, as endorsed by the AcSB and incorporated in the CPA Canada Handbook – Accounting, is currently effective for annual reporting periods beginning on or after January 1, 2021. Therefore, the Board plans to complete its endorsement of the amendments to IFRS 17 as issued by the IASB before the end of 2020.

December 11, 2019

AcSB Decision Summary – December 11, 2019

The AcSB received an update on international developments relating to IFRS 17 Insurance Contracts, including the discussions at the International Accounting Standards Board (IASB) meetings during October to December 2019. The Board will continue to actively monitor developments and work with other national standard setters to stress the importance of a common global adoption date.

 

The AcSB also considered changes to its Insurance Transition Resource Group’s mandate. The Board decided to expand the Group’s mandate to include advising the Board on documents developed by other parties, such as the Canadian Institute of Actuaries. The Board approved the Group’s revised Terms of Reference, subject to minor amendments.

October 3, 2019

AcSB Decision Summary – September 17-18, 2019

The AcSB met with representatives from the Canadian Institute of Actuaries (CIA) to better understand the CIA’s work in supporting the implementation of IFRS 17 Insurance Contracts. The Board is committed to working together with the CIA to assist entities in applying the new insurance contract standard.

The AcSB also met with an external party that assists Canadian entities with IFRS 17 systems implementation to better understand the current landscape and the challenges these entities face.

In addition, the AcSB discussed its response letter to the International Accounting Standards Board’s (IASB) Exposure Draft, “Amendments to IFRS 17,” after considering the feedback it received from stakeholders through its extensive outreach activities. The Board decided on the key matters to raise with the IASB and directed staff to make amendments based on its comments. The Board’s response letter was sent to the IASB by the September 25, 2019, deadline.

July 17, 2019

AcSB Decision Summary – July 17, 2019

Insurance Contracts

The AcSB received an update on international developments relating to IFRS 17 Insurance Contracts. The Board discussed the proposed amendments to the standard in preparation for its outreach activities with IASB member, Darrel Scott. These activities included:

  • hosting a panel discussion on July 18, 2019, featuring Mr. Scott and other experts from the financial reporting community (video recording available);
  • consulting with the Board’s Insurance Transition Resource Group; and
  • undertaking targeted outreach with Canadian stakeholders.

The AcSB will also hold two virtual roundtables on September 5 and 11, 2019, for Canadian stakeholders across Canada to provide input on the proposed amendments to IFRS 17.

 

June 18, 2019

AcSB Decision Summary – June 18, 2019

An education session was held on the expected proposed amendments to IFRS 17 Insurance Contracts. No decisions were made.

The AcSB also discussed and approved a plan to respond to the International Accounting Standards Board’s (IASB) upcoming exposure draft on amendments to IFRS 17. The plan includes outreach activities in July 2019 with Darrel Scott, IASB member and advisor on the IASB’s insurance project.

The Board is sponsoring this activity as part of its ongoing work to ensure Canadians are supported during the implementation phase of new standards, and to ensure Canadian views are heard. 

The AcSB’s outreach activities on the IASB’s exposure draft include:

  • hosting a panel discussion on July 18, 2019 featuring Darrel Scott and other experts from the financial reporting community;
  • consulting with the Board’s Insurance Transition Resource Support Group;
  • undertaking targeted outreach with Canadian stakeholders; and
  • holding a virtual roundtable early September for Canadian stakeholders across Canada to provide input on the proposed amendments to IFRS 17.

May 15, 2019

AcSB Decision Summary – May 15, 2019

The AcSB received an update on international developments of IFRS 17 Insurance Contracts, including summaries of the March 26 AcSB Insurance Transition Resource Group meeting and the May 14-16 discussion at the International Accounting Standards Board (IASB) meeting.

The IASB is expected to issue an exposure draft of proposed amendments to IFRS 17 by the end of June 2019. The AcSB briefly discussed outreach activities it intends to conduct to obtain feedback from stakeholders in mid-July for a forthcoming exposure draft. The Board will be sponsoring a visit from Darrel Scott, an IASB member and IASB advisor on insurance, to participate in the AcSB’s outreach activities. The AcSB Chair, along with representatives from Europe, will be participating on an insurance panel in Hong Kong discussing the implementation and endorsement process. The Board will consider a formal plan to respond to the IASB’s exposure draft at its next meeting.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.