Issued Standard
IFRS 17 foundation materials
IFRS 17 Insurance Contracts was issued by the International Accounting Standards Board (Board) on 18 May 2017. The Board has undertaken a number of activities to support consistent application of the Standard, and has established a Transition Resource Group. The Board published some amendments to IFRS 17, including a deferral of the effective date of IFRS 17 by two years so that entities are required to apply IFRS 17 for annual periods beginning on or after 1 January 2023. Visit Amendments to IFRS 17 to find out more about the amendments published in June 2020.
The materials relating to the activities to support consistent application of the Standard, whichare listed below, have been developed in the context of IFRS 17 as issued in May 2017. Thematerials relating to the amendments to IFRS 17 provide information about the changes to IFRS17 published in June 2020.
IFRS 17 Insurance Contracts—Key terms
Contractual service margin
The unearned profit component of the insurance contract liability presented in the balance sheet and recognised in the income statement as a company provides services under insurance contracts
Coverage period
The period during which the insurer provides services under insurance contracts
Fulfilment cash flows
Estimates of amounts that the insurer expects to collect from premiums and pay out for claims, benefits and expenses, including an adjustment for the timing and risk of those amounts
Insurance contract
An agreement under which a customer (the policyholder) transfers significant insurance risk to an insurer
Insurance risk
Risk, other than financial risk, transferred from the policyholder to the insurer (for example, risk of death)
Investment component
Amounts included in premiums that an insurer returns to its customer in any case, regardless the occurrence of an event
Liability for remaining coverage
Insurer’s obligation to provide insurance contract services
Liability for incurred claims
Insurer’s obligation to pay amounts related to services provided
Portfolio of insurance contracts
Insurance contracts that are subject to similar risks and managed together. Different product lines (for example, annuities and car insurance) are expected to be in different portfolios
Policyholder
A party that has a right to compensation under an insurance contract if an insured event occurs
Risk adjustment for non-financial risk
The compensation an insurer requires for bearing the insurance risk
This list of key terms is for educational purposes only. Defined IFRS 17 terms are included in Appendix A of the Standard.
Education webcasts and webinars
Webcast: Summary of the accounting model in IFRS 17
A short webcast to guide you through the different elements of the accounting model in IFRS 17 and how they will be display on a company’s balance sheet and in its profit or loss statement.
Date
Title
01 Jan 2018
Webcasts: IFRS 17 requirements
This webcast series aims to provide a basic introduction into various aspects of IFRS 17.
Date
Title
30 Jul 2020
30 Jul 2020
30 Jul 2020
07 Mar 2018
07 Mar 2018
18 Jan 2018
18 Jan 2018
18 Jan 2018
12 Dec 2017
12 Dec 2017
12 Dec 2017
02 Nov 2017
18 Sep 2017
18 Sep 2017
27 Jul 2017
27 Jul 2017
27 Jul 2017
21 Jun 2017
21 Jun 2017
18 May 2017
18 May 2017
Education meetings with investors, regulators and national standard-setters (NSS)
These education and meeting materials are intended both to educate stakeholders and to obtain information about implementation issues and the developing practice relating to IFRS 17.
Date
Title
17 May 2017