Introducing IFRS 17 On Insurance Contracts

IFRS 17 Insurance Contract (International Financial Reporting Standards) is the new accounting standards for insurance contracts. IFRS 17 was introduced on May 2017 by International Accounting Standards Board (IASB) and it is a profound development on setting out a common global accounting standard on measurement, recognition of profit and loss, presentation and disclosure of insurance contracts.

IFRS 17 is essentially replacing the Interim Standard (IFRS 4) which allowed insurance companies to employ various accounting practices based on their jurisdiction and their company's policy (GAAP – Generally Accepted Accounting Principles). IFRS 17 was originally scheduled to be applied on or after 1^st January 2021, however, the IASB has deferred the implementation date to 1^st January 2022.