Alert: Exposure Draft – Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Proposed Amendments to IFRS 17) (July 2021)

Date: July 28, 2021
Type: IFRS
Category: Alerts

Alert: Exposure Draft – Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Proposed Amendments to IFRS 17) (July 2021)

In July 2021, the International Accounting Standards Board (“IASB”) published, for public comment, the Exposure Draft, Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Proposed Amendments to IFRS 17). The Exposure Draft proposes a narrow scope amendment to the transition requirements of IFRS 17 Insurance Contracts (“IFRS 17”) in order to increase the usefulness of the comparative information presented on initial application, by insurance entities, of IFRS 17 and IFRS 9, Financial Instruments (“IFRS 9”).


Many insurance entities will first apply IFRS 17 and IFRS 9 for annual reporting periods beginning on or after January 1, 2023.

IFRS 17 and IFRS 9 have different transition requirements:

  • IFRS 17 requires presentation of one restated comparative period.
  • IFRS 9 permits but does not require restatement of comparative periods. IFRS 9 does not permit the restatement of comparative information for items derecognized before the date of initial application.

These different transition requirements could result in significant accounting mismatches between insurance contract liabilities and financial assets in the comparative information presented on initial application of IFRS 17 and IFRS 9.

The amendment

In this Exposure Draft, the IASB has introduced an optional classification overlay approach (the “New Approach”) to address the classification differences. The New Approach would permit an insurer to present comparative information about certain financial assets in a manner consistent with IFRS 9. This New Approach would apply on an instrument-by-instrument basis to the financial assets that are related to insurance contract liabilities and to which IFRS 9 has not been applied in the comparative period(s).

The Exposure Draft proposes no change to the transition requirements in IFRS 9.

The Exposure Draft is open for public comment until September 27, 2021.


The full history of the IASB’s project on the Initial Application of IFRS 17 and IFRS 9 – Comparative Information (Proposed Amendments to IFRS 17) is available here.

This communication contains a general overview of the topic and is current as of July 28, 2021. This information is not a substitute for professional advice and we recommend that any decisions you take about the application or not of any of the information presented be made in consultation with a qualified professional. Contact your local MNP representative for customized assistance with the application of this material. MNP LLP accepts no responsibility or liability for any loss related to any person's use of or reliance upon this material. © MNP LLP 2021. All rights reserved.

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Michelle Balmer CPA, CA

Vice President, Assurance

Michelle Balmer, CPA, CA, is a Senior Assurance Services Partner with MNP. With 14 years of experience in public practice, Michelle helps a broad range of public and privately held companies in a variety of industries. She also works on special projects, including costing studies, benchmarking and best-practice studies, operational analyses, litigation support and due diligence.

As a key member of MNP's Assurance team, Michelle has played an instrumental role in assurance policy development, implementing accounting and assurance standards firm-wide and educating assurance practitioners regarding methodologies and new pronouncements. She also provides technical advice and consultation on accounting and assurance issues, as well as on rules of professional conduct issues, to all MNP practitioners.

Michelle was certified a Chartered Accountant (CA) after obtaining a Bachelor of Commerce degree from the University of Alberta. She has been actively involved with the Institute of Chartered Accountants of Alberta, including the Chartered Accountants School of Business, in an instructional and marketing capacity. An avid volunteer, she has assisted numerous groups such as the Easter Seals of Alberta, Paralympic Sports Association and Junior Achievement of Northern Alberta.