HKFRS/IFRS 17 Insurance Contracts
Supporting implementation of HKFRS/IFRS 17 Insurance Contracts
Background
In May 2017, the International Accounting Standards Board (IASB) issued IFRS 17 Insurance Contracts. The HKICPA's Financial Reporting Standards Committee (FRSC) approved HKFRS 17 Insurance Contracts in December 2017. For more details on HKFRS 17, click here.
In June 2019, the IASB issued the ED Amendments to IFRS 17, which introduced targeted amendments to IFRS 17 designed to address issues raised during implementation. More information about these amendments can be found at the IASB’s website.
The Institute issued an Invitation to Comment on the IASB ED on 27 June 2019. The Institute undertook significant outreach activities with stakeholders, including holding several roundtables, and developed its response to the IASB ED by considering feedback from stakeholders and its FRSC.
The Institute’s comment letter in response to the IASB ED was submitted on 25 September and can be found at the Institute’s website.
Current status
The IASB finalized and issued the Amendments to IFRS 17 in June 2020. More information is available on the IASB’s website.
In October 2020, after robust due process, the HKICPA’s FRSC finalized endorsement of, and issued, equivalent Amendments to HKFRS 17.
How are we supporting implementation of HKFRS 17?
HKICPA is committed to monitoring HKFRS 17 implementation developments in Hong Kong and internationally, facilitating discussions with the industry, and working together with the industry and the IASB in resolving any challenges. The HKICPA hosts the Hong Kong Insurance Advisory Panel (HKIAP) that provides a forum to discuss stakeholder questions and identify implementation issues related to HKFRS 17. We welcome the public to register as an observer or submit a question to the HKIAP.
Since July 2017, HKICPA has been providing training on IFRS 17 for industry professionals to develop an in-depth knowledge of the standard. E-mail insurance@hkicpa.org.hk for more information.
Please see a list of the Institute’s upcoming training for HKFRS 17 here.
Keep in touch with developments on HKFRS 17
Sign up for the Institute’s HKFRS/IFRS 17 Insurance Contracts newsletter by emailing insurance@hkicpa.org.hk.
Major international collaboration and contribution events
- Ongoing discussions on IFRS 17 implementation issues in the Asian-Oceanian Standard-Setters Group and International Forum of Accounting Standard Setters with IASB attendance. Also regular communication with IASB staff.
- Presented to the European Financial Reporting Advisory Group on IFRS 17 implementation issues in Hong Kong
- Collaborated with the Canadian and Korean Accounting Standard-Setters to present on IFRS 17 issues at the International Forum of Accounting Standard Setters
- Presented at the Asian Forum of Insurance Regulators providing an overview of Hong Kong's journey in endorsing HKFRS 17 and providing implementation support
- Hosted an IFRS 17 Global Developments Discussion Forum focusing on international IFRS 17 developments, with speakers from the IASB and Canadian and European standard setters.
Key examples of enhanced implementation support for Hong Kong stakeholders
- Communicated Hong Kong stakeholder concerns over the effective date of IFRS 17 to the IASB
- Sent a technical issues paper to the IASB recommending changes to IFRS 17.
- Communicated to all Hong Kong authorised insurers and the wider public.
- Held two CFO forums for life and non-life insurers to explain why HKFRS/IFRS 17 is needed and provide a high-level overview of the requirements.
- Held education sessions for the Hong Kong Insurance Authority and for Hong Kong investors and analysts.
- Established its Hong Kong Insurance Advisory Panel which meets regularly to discuss local implementation questions as well as the IASB TRG meeting papers.
- Established a newsletter subscription service for stakeholders who are interested in receiving updates on HKFRS/IFRS 17 Insurance Contracts. E-mail insurance@hkicpa.org.hk to subscribe.
- Published two pocket summaries which focused on: (i) how to plan for implementation and (ii) contract boundary.
- Several stakeholder roundtables and investor outreach events to discuss the IASB’s proposed amendments to IFRS 17.
- Presented an update on latest developments of HKFRS 17 at the HKFI’s 2020 implementation townhall.
- Published HKFRS 17 Contractual Service Margin educational guidance
- Published A-Plus article on HKFRS 17 Contractual service margin educational guidance
- Submitted comment letter on the IASB Exposure Draft ED/2021/8 Initial Application of IFRS 17 and IFRS 9—Comparative Information
- Educational Publication: HKFRS 17 Insurance Contracts – Journal Entries (June 2023)
- Educational Publication: HKFRS 17 Insurance Contracts – Journal Entries on Reinsurance Contracts Held (November 2023)
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Last updated: 18 March 2024
