Regulatory Alerts2023-01-01
Circular No. 8 of 2023 – Effective Date for IFRS 17 Implementation
The Financial Services Authority has deferred the mandatory implementation date of International Financial Reporting Standard 17 for insurance licensees from January 2021 to January 1, 2024. This adjustment addresses operational and systemic challenges faced by regulated entities as they adapt their internal reporting processes to comply with the new insurance contract accounting rules. All licensees operating under the Insurance Act, 2008 must align their annual financial reporting periods beginning on or after the new effective date with the updated standard.
Circular No. 8 of 2023 Date: 3 rd October, 2023 Effective date of IFRS 17 implementation The Financial Services Authority (“FSA”) would like to draw the attention of all its licensees under the Insurance Act, 2008 (“the Act”), in regards to the implementation of International Financial Reporting Standard (“IFRS”) 17. In May 2017, the International Accounting Standards Board (“IASB”) published the IFRS 17 which was an update and replacement of the current standards, IFRS 4, on insurance contracts. The update set out an effective phased out approach of the IFRS 4 and for insurers to implement the new IFRS 17 for annual periods beginning on or after January 1, 2021. In consideration of the several challenges currently being faced by licensees notably for altering their internal process and system for reporting in line with IFRS 17, the FSA has taken the decision to defer the effective date of implementation of IFRS 17 to 1 st January 2024. FINANCIAL SERVICES AUTHORITY