AXIS™ IFRS 17
IFRS 17 Accounting Standards for Insurance
Pending Review of IFRS 17 by IASB
On November 14, 2018, the the International Accounting Standards Board (IASB) announced that they had voted to propose a one year deferral of the effective date of IFRS 17 to the 2022 reporting year. They also voted to propose deferral of IFRS 9 implementation for one more year, for insurers who were previously allowed to defer IFRS 9 implementation to coincide with IFRS 17.
This announcement followed earlier discussion by the IASB of a list of 25 issues reflecting public feedback on IFRS 17 and implementation challenges. The Board has decided to further discuss these issues in December 2018, leading to the possibility of amendments to the IFRS 17 standard in 2019. The decision to support a one year deferral was justified by the need to provide certainty in the timing to avoid unduly disrupting ongoing implementation efforts. Accordingly while the effective date of 2021 defined by Paragraph IN 2 in the IFRS 17 standard remains in place, it seems clear that this will be formally amended in coming months.
The issues list to be discussed by the IASB contains smaller set of issues also raised by the Board of EFRAG in a letter to the IFRS Foundation dated September 3, 2018.
Moody’s Analytics will not be slowing down its development project for planned enhancements in AXIS, including the new IFRS 17 Link modules, as a result of these announcements. We will continue to work with our clients to deliver the full IFRS 17 solution functionality needed to support the new standard in a timely manner.