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

Resolution No. CD-SIBOIF- 1219-1- DIC09-2020
Dated December 9, 2020

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 Gazette No. 240, on December 18, 2017.

II

That the International Accounting Standards Board (IASB) has decided to postpone the effective date of IFRS 17 "Insurance Contracts" for its application in the presentation of annual financial reports to January 1, 2023, according to a press release dated March 17, 2020, published on the website of the IFRS Foundation.

III

That since the implementation of IFRS 17 is of vital importance to improve the quality and comparability of insurance contract accounting, it is necessary to reform Article 5 of the Standard for the Implementation of the Accounting Framework for Insurance, Reinsurance, and Surety Companies to adjust the adoption date of IFRS 17 to the date indicated in the preceding consideration.

IV

That in accordance with the considerations expressed above and based on the powers provided for in Articles 4 and 5, numeral 1), of Law No. 733, "General Law of Insurance, Reinsurance, and Surety," and in 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. 974, Law of the Nicaraguan Legal Digest of the Banking and Finance Sector, published in La Gaceta, Official Gazette No. 164, on August 27, 2018, and its updates.

In exercise of its powers,

HAS ISSUED

The following,

CD-SIBOIF- 1219-1- DIC09-2020

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 Gazette No. 240 on December 18, 2017, is hereby reformed, which shall read as follows:

"Article 5. Implementation of the accounting framework with IFRS 17.- From January 1, 2023, insurance, reinsurance, and surety companies must adopt and implement all matters concerning IFRS 17 "Insurance Contracts" and previously report the progress of activities carried out for the adoption and implementation of this standard, as required by the Superintendent."

SECOND: This standard shall enter into force upon its notification, without prejudice to its subsequent publication in La Gaceta, Official Gazette. (F) S. Rosales (F) Illegible (Luis Ángel Montenegro E.) (F) Illegible (Fausto Reyes B.) (F) Illegible (Silvio Moisés Casco Marenco) (F) Illegible (Ervin Vargas Pérez (F) Illegible (Rafael Avellán Rivas) Secretary".

RAFAEL ÁNGEL AVELLÁN RIVAS
Secretary of the Board of Directors SIBOIF