Outlines in EFRAG draft comment letter on IFRS 17 IASB ED/2019/4 amendments
>> See response to EFRAG draft comment letter
>> Learn more: ESBG positions
BRUSSELS, 4 September 2019 – ESBG continues to support a high-quality standard for insurance contract accounting. That stance was put on record last week in the association's response to an EFRAG draft comment letter on the IASB's ED/2019/4 amendments to IFRS 17. ESBG commented in the response that IFRS 17 seeks to significantly raise comparability in accounting for insurance contracts between companies from different countries and business models. IFRS 17 also looks to enhance the quality of financial information.
A high-quality standard does not correctly reflect certain contracts issued by ESBG members that represent long-term life-saving products managed under cash flow matching and, to a certain extent, participating contracts, through its measurement nor its presentation requirements. ESBG also argues that the proposed deferral of the effective date to 1 January 2022 is insufficient and that an additional deferral to 1 January 2023 is needed for a successful implementation of the standard.