SW India Global Shared Services (GSS) has summarized some of the key facts to ease out the IFRS 17
Implementation: –
IFRS 17 is effective for annual reporting periods beginning on or after 1 January 2023 with earlier application permitted.
Specified financial guarantee contracts
Choice: – IFRS 17 or IFRS 9
Conditions: – Choice by contract
Choice is irrevocable
Choice: – IFRS 17 or IFRS 15
Conditions: – Choice by contracts
Choice is irrevocable
Specified loan contracts
Choice: – IFRS 17 or IFRS 9
Conditions: – Choice by portfolio
Choice is irrevocable
Loss Recoveries on reinsurance contracts held recognized at same time as day 1 losses on onerous underlying contracts issued and adjusted net cost (or net gain) recognized over time.
Insurance Acquisition cash flows paid (E.g., Commission paid) are recognized as an asset until the initial insurance contracts they relate to are recognized. A portion of such an asset continues to be recognized until expected renewals of those initial insurance contracts are recognized in future.
For general model contracts profit is recognized over time as the entity provides insurance coverage and investment-return service (If any).
An entity can choose whether or not to change the treatment of estimates made in previous interim reports.
Option extended to apply when an entity mitigates financial risk using derivatives, reinsurance contracts held or non-derivative financial instruments at FVPL.
Portfolios of Insurance contracts that are assets and those that are liabilities presented separately (Presented at a higher level).
Implementation of IFRS 17 is as complex as it appears from above. With SW India GSS, you can work with professionals who understand all facts related to IFRS 17 and linked complexities as well. We are ready to apply of knowledge and industry experience to develop a seamless execution strategy for your business needs.
