ASCG Answer to EFRAG on the IFRS 17 Draft Endorsement Advice

Today, the ASCG submitted to EFRAG its feedback on the IFRS 17 Draft Endorsement Advice. We provide our answers on the questions raised by EFRAG as well as a cover letter which summarises our position.

Therein, we confirm our overall support and aim of achieving a swift endorsement of IFRS 17 as issued by the IASB. In particular, we consider the negative arguments raised against the annual cohort requirement not being robust enough for justifying not to endorse IFRS 17. Further, we emphasize our finding that, despite arguments against the annual cohort requirement, so far no “superior solution” has emerged and entities in Germany no longer challenge the annual cohort requirement but have accustomed to disaggregating contracts that way. Therefore, we urge EFRAG to express an overall positive advice for endorsing IFRS 17.