The International Accounting Standards Board (IASB) has delivered a progress update on the release of the final version of International Financial Reporting Standard 17 (IFRS 17), which is expected in June.
According to Willis Towers Watson, June 2020 remains the target date for the release of the final IFRS 17, amid massive disruption caused by the coronavirus update. A webcast is being planned to introduce the amendments to stakeholders, with a date yet to be determined.
“In spite of the challenges posed by COVID-19, the implementation of IFRS 17 remains urgent, as entities need certainty of the amendments to IFRS 17 to avoid unnecessary and undue costs and disruptions in its implementation,” said Ralph Ovsec, senior director, insurance consulting and technology, at Willis Towers Watson.
The broking and consulting giant said that a pre-ballot draft of IFRS 17 has been circulated to the IASB and to a select group of SMEs, with many comments having been received. According to the statement, the IASB staff is reviewing the comments to determine whether any further adjustments to IFRS 17 are needed. Any further adjustments will be brought to the May 2020 IASB meeting as sweep issues.
IFRS 17 was originally published in May 2017, and it will introduce a new standard in accounting for insurance contracts. It has been revised following feedback from key stakeholders, both before and after the publication of the June 2019 limited exposure draft.