Exposure Draft expected in July 2021 on classification overlay for financial assets in the comparative period on initial application of IFRS 17.
At its June 2021 meeting, the IASB agreed to propose 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, and discussed at the IASB’s May meeting, regarding accounting mismatches that could arise between financial assets and insurance contracts in comparative information when IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments are first applied.
The ED is expected to be published by the end of July 2021, with the aim to finalise the amendments by the end of the year.
