EU endorsement of IFRS 17

The European Union has published in the Official Journal as of 23 November 2021 the Commission Regulation (EC) No 2021/2036 of 19 November 2021 amending Regulation (EC) No 1226/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council.

This Regulation adopts IFRS 17 Insurance Contracts (and consequential amendments to other IFRSs) – as published by the IASB in May 2017 – as well as subsequent Amendments to IFRS 17 – as published by the IASB in June 2020.

However, the endorsement of IFRS 17 is peculiar: The annual cohort requirement in IFRS 17 (see IFRS 17.22) is subject to an optional exemption – as is laid out in article 2 of this regulation EC/2021/2036: The Commission provides entities an option to apply, or to not apply, the requirement of IFRS 17.22 to certain specified contracts. The rationale for providing this option is laid out in the basis for conclusions #8 et seqq. of this regulation. Though, the wording of IFRS 17, as per the annex to this regulation, is identical with IFRS 17 as published by the IASB.

At the same time, EFRAG published its latest Endorsement Status Report, reflecting the adoption of IFRS 17.