Many insurance entities will first apply International Financial Reporting Standard (IFRS) 17, Insurance Contracts, and IFRS 9, Financial Instruments, for annual reporting periods beginning on or after January 1, 2023. The International Accounting Standards Board recently issued an Exposure Draft, Initial Application of IFRS 17 and IFRS 9 – Comparative Information, which proposes a narrow-scope amendment to the transition requirements in Appendix C of IFRS 17 for entities that first apply IFRS 17 and IFRS 9 at the same time. The proposed amendment relates to financial assets for which comparative information presented on initial application of IFRS 17 and IFRS 9 has not been restated for IFRS 9. Under the proposed amendment, an entity would be permitted to present comparative information about such a financial asset as if the classification and measurement requirements of IFRS 9 had been applied to that financial asset.
The Exposure Draft proposes no change to the transition requirements in IFRS 9. The Exposure Draft is available for comment until September 27, 2021.