The proposed amendment would allow a classification overlay for financial assets in the comparative period if certain conditions are met.
The IASB issued an Exposure Draft Initial Application of IFRS 17 and IFRS 9—Comparative Information on 28 July 2021. The ED proposes a narrow-scope amendment to IFRS 17 Insurance Contracts to allow a classification overlay for financial assets in the comparative period if certain conditions are met. This proposal is in response to concerns raised by stakeholders regarding accounting mismatches that could arise between financial assets and insurance contract liabilities in the comparative information when IFRS 17 and IFRS 9 Financial Instruments (IFRS 9) are first applied in 2023.
The 60-day comment period to respond to the ED ends on 27 September 2021.
