Summary
The EFRAG Secretariat is in the process of preparing for the upcoming Exposure Draft on amendments to IFRS 17 Insurance Contracts. Considering the tight timeline for discussing, they request written input from IAWG members on some of the topics so that the discussion in the June physical meeting could focus on the EFRAG issues that remain unaddressed.
The attached issues paper covers the following topics whereby changes are proposed by the IASB:
(a) Topic 1A – Loans that transfer significant insurance risk;
(b) Topic 1B – Credit cards that provide insurance coverage;
(c) Topic 2 – Allocation of acquisition costs to expected contract renewals;
(d) Topic 3 – Simplified balance sheet presentation;
(e) Topic 4 – Extension of risk mitigation option;
(f) Topic 5A – Transition relief for business combinations;
(g) Topic 5B – Transition relief for risk mitigation – transition date and fair value approach; and
(h) Topic 6 – Annual improvements.
For each of the topics listed above, the EFRAG Secretariat has drafted a proposed wording to include in the Draft Comment Letter and questions for members on each of the topics. The wording has been prepared on the basis of the IASB Staff Papers and the IASB tentative decisions. Should the final wording of the ED require further refining of the drafting, the specific topic will be considered in the IAWG physical meeting.
Questions for EFRAG IAWG members are in paragraphs 7, 13, 17, 24, 30, 33, 40 and 45.
Amendments to IFRS 17 – EFRAG isssues paper on the forthcoming Exposure Draft.pdf