Narrow Scope Amendment to IFRS 17 – Insurance Contracts

The International Accounting Standards Board (IASB) has made amendments to ‘Initial Application of IFRS 17, Insurance Contracts and IFRS 9, Financial Instruments’ by providing an alternative to insurers with the aim to improve the usefulness of comparative information to investors.

Now, at the present time, IFRS 17 and IFRS 9 Financial Instruments have different requirements for the presentation of comparative information. By this amendment, temporary accounting mismatches between financial assets and insurance contract liabilities, at the first application of these IFRS will be eliminated by providing an option to insurers for the presentation of comparative information about financial assets.

This amendment is effective for annual reporting periods starting on or after 1 January 2023.

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