On 20 May 2020, the IASB (‘Board’) considered staff analysis and questions on sweep issues identified during the balloting process. The Board tentatively decided to amend IFRS 17 to correct minor technical issues relating to:
pre-recognition cash flows other than insurance acquisition cash flows;
reinsurance contracts held — identifying losses on underlying insurance contracts;
insurance revenue — income tax;
definitions of the liability for remaining coverage and the liability for incurred claims;
variable fee approach — applying together the OCI option and the risk mitigation option; and
the effects of the unexpected payment or non-payment of investment components in a period.
The Board expects to issue the amendments to IFRS 17 by the end of June 2020.
The views in this In transition are based on our observations from the 20 May 2020 meeting, and they might differ in some respects from the official report of the meeting that will be published by the IASB in an IASB Update at a later date.
In transition - the latest on IFRS 17 implementation - May 2020