First TRG meeting on the introduction of IFRS 17

On 6 February 2018, the IASB organised the first working session of the transitional resource group (TRG), set up to discuss the introduction of IFRS 17 – Insurance contracts.

Keywords: Mazars, Thailand, IFRS, IFRS 17, TRG

23 April 2018

The following six topics were addressed in detail:

  • separation of insurance components of a single insurance contract;
  • boundary of contracts with annual repricing mechanisms;
  • boundary of reinsurance contracts held;
  • treatment of insurance acquisition cash flows paid (commissions) and future renewals;
  • determining the quantity of benefits for identifying coverage units; and
  • insurance acquisition cash flows when using fair value transition.

A working document was presented addressing 12 other submissions, classified in the following three categories:

  • submissions that can be answered applying only the words in IFRS 17 (six questions),
  • submissions that do not meet the submission criteria (four questions), and
  • submissions that will be considered through a process other than a TRG discussion (two questions).

To fulfil the submission criteria, implementation questions:

  • must be related to, or arise from, IFRS 17;
  • may result in possible diversity in practice; and
  • are expected to be pervasive, i.e. relevant to a wide group of stakeholders.

A summary of the TRG discussions can be consulted at the IFRS website