The July 2015, Issue 47 of KPMG ISG’s IFRS Newsletter: Insurance – Moving Towards International Insurance Accounting highlights the IASB’s recent discussions about the accounting consequences of the different effective dates of IFRS 9, Financial Instruments, and the forthcoming standard about insurance contracts. The discussion focused on temporary volatility and accounting mismatches in profit or loss.
The Board discussed three options to address these accounting consequences (1) using the existing change in accounting options under IFRS 4, Insurance Contracts, (2) amending IFRS 4, or (3) deferring the effective date of IFRS 9 in some circumstances.
The IASB tentatively decided to amend IFRS 4 to permit an entity to remove from profit or loss the effect of applying IFRS 9, subject to certain limitations. The Board will discuss related issues, and whether to allow a deferral of the effective date of IFRS 9, in September.