News May 2022 UK Endorsement Board adopts IFRS 17 – first major standard

UK Endorsement Board adopts IFRS 17 – first major standard

17 May 2022

Issued on behalf of the UKEB

The UK Endorsement Board (UKEB) has announced that it has approved the adoption of the International Accounting Standards Board’s (IASB) IFRS 17 Insurance Contracts for use by UK companies. It is the first major standard adopted by the UKEB since the UKEB received delegated powers from the Business Secretary on 22 May 2021.

IFRS 17 is a significant new accounting standard for the insurance sector and is the result of many years of work by the IASB, with extensive input from a wide range of international stakeholders. IFRS 17 represents the first comprehensive international accounting standard that can be applied to all types of insurance contracts, aiming to ensure that entities provide relevant information that faithfully represents those contracts.

IFRS 17 is effective for annual periods beginning on or after 1 January 2023, with early application permitted for entities that apply IFRS 9 Financial Instruments on or before the date of initial application of IFRS 17.

The Chair of the UKEB Pauline Wallace said:

The UKEB has carefully considered the statutory criteria for adopting new IFRS for use in the UK and is satisfied that IFRS 17 meets them all. Overall, the UKEB considers that the adoption of IFRS 17 will lead to substantial improvements in financial reporting for insurance contracts and that its application will be conducive to the long term public good in the UK.

The adoption of IFRS 17 marks a major milestone in the work of the UKEB during its first year of operation. I am grateful for the extensive and constructive engagement from UK stakeholders during the consultation process, the detailed analysis carried out by the UKEB staff, and the thorough consideration given by board members to each of the statutory criteria.

The UKEB looks forward to continuing to engage with UK stakeholders during the implementation and initial application of the Standard.”

Further information is available here

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William BoyackSenior Communications Manager