Initial Application of IFRS 17 and IFRS 9

This exposure draft is a proposed amendment to Appendix C of IFRS 17, which applies to issued insurance and reinsurance contracts, reinsurance contracts held, and investment contracts with a discretionary participation feature issued by an entity that also issues insurance contracts. Contracts may be grouped for accounting purposes.

Keywords: Mazars, Thailand, Accounting, TFRS, TFAC

16 November 2021

The exposure draft of Thai Financial Reporting Standard (“TFRS”) 17, ‘Insurance contracts’, is based on the International Financial Reporting Standards, and the corresponding Thai Financial Reporting Standard will be effective for annual periods starting on or after 1 January 2024 in Thailand. TFRS 4, ‘Insurance Contracts’, will be cancelled when this standard is announced and applied.

On 6 October 2021, the Federation of Accounting Professions arranged a public hearing related to this exposure draft. The objectives of the public hearing were as follows:

  1. To gain a better understanding of the principles and significant areas of the exposure drafts.
  2. To help the insurance industry get ready to implement TFRS 17, as it will be a significant challenge, fundamentally changing accounting and reporting practices.

The topics discussed during the public hearing included the following:

  • Summary of the principles of Exposure Draft 2021/8: Initial Application of IFRS 17 and IFRS 9 – Comparative Information
  • Summary of the principles of the exposure draft of TFRS 17, ‘Insurance contracts’
  1. Combination of insurance contracts
  2. Separating components from an insurance contract
  3. Level of aggregation of insurance contracts
  4. Recognition and insurance acquisition cash flow 
  5. Measurement on initial recognition
  6. Subsequent measurement
  7. Onerous contracts
  8. Premium allocation approach
  9. Reinsurance contracts held
  10. Investment contracts with discretionary participation features
  11. Modification and derecognition
  12. Presentation in the statement of financial position
  13. Recognition and presentation in the statement of financial performance
  14. Disclosures
  15. TFRS 17 (Transition)

Reference: TFAC

For further information on IFRS 17, please visit our website.