ESMA endorses IFRS 17 insurance contracts

ESMA supports the endorsement of IFRS 17 which will provide a consistent system of requirements to account for insurance and reinsurance contracts.

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Friday, January 29, 2021

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ESMA supports the endorsement of IFRS 17 which will provide a consistent system of requirements to account for insurance and reinsurance contracts.
ESMAs response to the consultation indicates that a key role in promoting greater transparency and consistency in accounting for insurance contracts in accordance with IFRS 17 is played by the principles for the aggregation of contracts that form an integral part of the new measurement model.
In addition, ESMA notes that IFRS 17 is a very detailed standard which reflects the complexity of the underlying insurance and reinsurance business which results in the extensive application of professional judgement.
The response builds on previous ESMA public positions in relation to IFRS 17, particularly its September 2019 response to EFRAGs consultation on its draft comment letter on the International Accounting Standards Boards Exposure Draft Amendments to IFRS 17.