Date: 09 August 2021
The UK Endorsement Board (UKEB) has published its Draft Comment Letter in response to the IASB’s Exposure Draft: Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Proposed Amendment to IFRS 17).
This Exposure Draft (ED) proposes a narrow-scope amendment to IFRS 17 to enable insurance entities to improve the usefulness of the comparative information presented on initial application of IFRS 17 and IFRS 9.
The ED proposes a narrow-scope amendment to the IFRS 17 transition requirements for entities that first apply IFRS 17 and IFRS 9 at the same time. The proposed amendment applies to financial assets for which comparative information presented on initial application of IFRS 17 and IFRS 9 has not been restated for IFRS 9. The proposed amendment would permit an entity to present comparative information about such financial assets as if the classification and measurement requirements of IFRS 9 had been applied to them. The ED proposes no change to the transition requirements in IFRS 9.
The Draft Comment Letter supports the proposals in the IASB’s ED as they will enable insurers to increase the understandability of comparative information on transition to IFRS 17 by permitting entities to avoid classification mismatches that arise purely from differences in transition requirements between IFRS 9 and IFRS 17. In addition, the Draft Comment Letter also provides some recommendations to enhance the IASB’s ED proposals.
The UKEB will consider all stakeholder feedback received by 30 August 2021 for inclusion in its final comment letter to the IASB. Feedback can be sent to UKEndorsementBoard@endorsement-board.uk
Link to Draft Comment Letter
For more information on the proposals and the UK Endorsement Board’s approach to this project, please see our website: Click here