New Insurance Accounting Standard IFRS 17: FSB Endorses New Accounting Standard for Insurance Contracts – IFRS 17

Sullivan & Cromwell LLP - July 24, 2017

On July 17, 2017, the Financial Stability Board issued a statement endorsing the final publication of International Financial Reporting Standard 17 (IFRS 17).  Previously, on May 18, 2017, the International Accounting Standards Board (IASB) issued the final version of IFRS 17, finalizing a long-standing project of the IASB to develop a single, consistent approach to the accounting for insurance contracts in jurisdictions that apply IFRS. IFRS 17 will replace IFRS 4, which currently allows entities to use a wide variety of accounting practices for insurance contracts, reflecting different national accounting requirements.  IFRS 17 will become effective for annual periods beginning on or after January 1, 2021.