Norm Reforming Article 5 of the Standard for Implementing the Accounting Framework for Insurance, Reinsurance, and Surety Companies

Resolution No. CD-SIBOIF-1482-1-DIC10-2024
Dated December 10, 2024

STANDARD REFORMING ARTICLE 5 OF THE STANDARD FOR THE IMPLEMENTATION OF THE ACCOUNTING FRAMEWORK FOR INSURANCE, REINSURANCE, AND SURETY COMPANIES

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I
That on November 21, 2017, the "Standard for the Implementation of the Accounting Framework for Insurance, Reinsurance, and Surety Companies" was approved, contained in Resolution No. CD-SIBOIF-1028-1-NOV21-2017, published in La Gaceta, Official Journal No. 240, of December 18, 2017, which in its Article 5 established the adoption of IFRS 17, "Insurance Contracts," effective January 1, 2021.

II
That, in June 2020, the International Accounting Standards Board (IASB) postponed the effective date of IFRS 17 to January 1, 2023; consequently, the Board of Directors of the Superintendence of Banks and Other Financial Institutions adjusted the adoption and implementation process of IFRS 17 to the aforementioned date.

III
That on November 22, 2022, Article 5 of the aforementioned standard was reformed to postpone the adoption and implementation date of IFRS 17 to January 1, 2025, given the need to generate parallel financial information, which would allow detecting and correcting issues arising from the use of new software, improvements, or development of technological platforms.

IV
That it is necessary to reform Article 5 of the "Standard for the Implementation of the Accounting Framework for Insurance, Reinsurance, and Surety Companies" once again, in order to extend the adoption and implementation period of IFRS 17, as it has been identified that insurance companies still need to continue developing their technical, operational, and technological capabilities to guarantee the effective and sustainable adoption of the aforementioned standard.

V
That, in accordance with the considerations expressed above and based on the authority provided for in Articles 4 and 5, numeral 1) of Law No. 733, "General Law of Insurance, Reinsurance, and Surety Bonds," and Article 3, numeral 13) and Article 10, numeral 1) of Law No. 316, "Law of the Superintendence of Banks and Other Financial Institutions"; both laws contained in Law No. 1175, "Law of the Nicaraguan Legal Digest on Banking and Finance Matters," published in La Gaceta, Official Journal No. 153, of August 20, 2024.

In exercise of its powers,

HAS ISSUED

The following,

Resolution No. CD-SIBOIF-1482-1-DIC10-2024
STANDARD REFORMING ARTICLE 5 OF THE STANDARD FOR THE IMPLEMENTATION OF THE ACCOUNTING FRAMEWORK FOR INSURANCE, REINSURANCE, AND SURETY COMPANIES

FIRST: Article 5 of the "Standard for the Implementation of the Accounting Framework for Insurance, Reinsurance, and Surety Companies," contained in Resolution No. CD-SIBOIF-1028-1-NOV21-2017, dated November 21, 2017, published in La Gaceta, Official Journal No. 240, of December 18, 2017, and its reforms, is hereby reformed, which shall read as follows:

"Article 5. Implementation of the accounting framework with IFRS 17.- Insurance, reinsurance, and surety companies shall adopt and implement all matters concerning IFRS 17 'Insurance Contracts,' for which the Superintendent shall define the general guidelines to be complied with by said companies, as well as the transition period, definitive convergence date, and other necessary aspects for the adoption and implementation of the aforementioned standard."

SECOND: This standard shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Journal.

(Signature) Legible Magaly María Sáenz Ulloa (Signature) Illegible (Luis Ángel Montenegro E) (Signature) Illegible Fausto Reyes (Signature) Illegible (Silvio Moisés Casco Marenco) (Signature) Illegible (Ervin Antonio Vargas Pérez) (Signature) Illegible Secretary.

SAÚL CASTELLÓN TÓRREZ
Ad Hoc Secretary, Board of Directors SIBOIF