Friday, September 30th, 2016
The amendments address concerns arising from implementing the new IFRS 9, before implementing the replacement Standard that the Board is developing for IFRS 4. These concerns include temporary volatility in reported results.
The amendments introduce two approaches:
an overlay approach and a deferral approach.
The amended Standard will:
The amendments to IFRS 4 supplement existing options in the Standard that can already be used to address the temporary volatility. The new insurance contracts Standard is currently being drafted and will have an effective date no earlier than 2020.