Project objective
The objective of this project is to address the temporary accounting consequences of the different effective dates of IFRS 9 Financial Instruments and the forthcoming insurance contracts Standard.
The Amendments to existing requirements—IFRS 4 Insurance Contracts:
- permit entities whose predominant activities are connected with insurance to defer the application of IFRS 9 until 2021 (the 'temporary exemption'); and
- permit all issuers of insurance contracts to recognise in other comprehensive income, rather than profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts Standard is issued (the 'overlay approach').”