Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4)
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Amendments to IFRS 4 Insurance Contracts
Paragraphs 20A, 20J and 20O are amended. New text is underlined and deleted text is struck through.
Temporary exemption from IFRS 9
20AIFRS 9 addresses the accounting for financial instruments and is effective for annual periods beginning on or after 1 January 2018. However, for an insurer that meets the criteria in paragraph 20B, this IFRS provides a temporary exemption that permits, but does not require, the insurer to apply IAS 39 Financial Instruments: Recognition and Measurement rather than IFRS 9 for annual periods beginning before 1 January 20232021. An insurer that applies the temporary exemption from IFRS 9 shall:
20JIf an entity no longer qualifies for the temporary exemption from IFRS 9 as a result of a reassessment (see paragraph 20G(a)), then the entity is permitted to continue to apply the temporary exemption from IFRS 9 only until the end of the annual period that began immediately after that reassessment. Nevertheless, the entity must apply IFRS 9 for annual periods beginning on or after 1 January 20232021. For example, if an entity determines that it no longer qualifies for the temporary exemption from IFRS 9 applying paragraph 20G(a) on 31 December 2018 (the end of its annual period), then the entity is permitted to continue to apply the temporary exemption from IFRS 9 only until 31 December 2019.
Temporary exemption from specific requirements in IAS 28
20OParagraphs 35-36 of IAS 28 Investments in Associates and Joint Ventures require an entity to apply uniform accounting policies when using the equity method. Nevertheless, for annual periods beginning before 1 January 20232021, an entity is permitted, but not required, to retain the relevant accounting policies applied by the associate or joint venture as follows: