IFRS 17 delay would lead to ‘significant additional costs”, GDV warns

Written by Adam Cadle

21/08/2019

IFRS 17 should be implemented without further delay by 2022, and any proposed changes to the regulations should only be taken into account if they are essential for the modelling of the business model and can be implemented in the given timeframe, German trade body, GDV, has argued.

GDV said “any delay in implementation would lead to significant additional costs”.

“It should be avoided that companies must also prepare comparative figures for the previous year according to the new standard at the start of IFRS 17.

“A postponement of IFRS 17 could also require insurers to apply the standard IFRS 9 for financial instruments in isolation. However, this would mean that liabilities from insurance contracts on the one hand and capital investments on the other would be valued differently, which could lead to distortions in the balance sheet and the income statement.”

GDV head of financial regulation Gotz Marc said: “Comparable accounting standards worldwide are an important driver of efficient global capital markets.”

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