OTTAWA, ON, Sept. 30, 2020 /CNW Telbec/ - Today the Office of the Superintendent of Financial Institutions (OSFI) released three documents that update the timelines for Canadian insurer's implementation of International Financial Reporting Standards - Insurance Contracts (IFRS 17). These changes provide institutions with a clear picture of OSFI's expectations for the implementation of this important project.
OSFI updated two accounting advisories on IFRS 17 and IFRS 9 to revise key milestones and reporting requirements for Canadian insurers that reflect the International Accounting Standards Board's deferral of IFRS 17 to January 1, 2023. The advisories align OSFI's expectations with the timelines set for implementation of IFRS accounting standards. The IFRS 9 advisory also explains that OSFI expects life insurers to defer the application of IFRS 9 until the expected effective date of the IFRS 17 standard on January 1, 2023.
Additionally, OSFI revised a previous Letter to Industry to provide Life, Property & Casualty, and Mortgage Insurers with new timeframes for adjustment of their capital tests.
The IFRS 17 replaces the wide variety of standards and practices currently applied to insurance contracts in different countries. It increases transparency in financial information for insurance companies because it provides one set of consistent reporting principles that allow better international comparisons between insurances industries. Such transparency will give investors and analysts more confidence in understanding the insurance industry.
OSFI will continue to work with the Canadian insurance sector to support a robust implementation of the new standard in Canada.
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"The move to IFRS 17 is a significant undertaking for the insurance industry. We remain focused on ensuring that our regulatory and supervisory frameworks continue to be effective and remain up to date with the new standard."
Ben Gully, Assistant Superintendent, Regulation Sector
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About OSFI
The Office of the Superintendent of Financial Institutions (OSFI) is an independent agency of the Government of Canada, established in 1987, to protect depositors, policyholders, financial institution creditors and pension plan members, while allowing financial institutions to compete and take reasonable risks.
SOURCE Office of the Superintendent of Financial Institutions
Media Contact: OSFI - Public Affairs, [email protected], 343-550-9373
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