IFRS 9 – countdown to a deferral

Some major European banks will soon begin to publish documents showing the effects of the transition to IFRS 9 from IAS 39. However, not all financial services companies reporting under IFRS in Europe will be reporting under IFRS 9 in 2018, nor indeed in 2019 and 2020. In September 2016, the IASB published Amendments to IFRS 4, Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts, which permit many listed insurance groups to continue reporting under IAS 39 until 2021 when the new insurance contracts standard, IFRS 17, becomes effective. Following the usual endorsement process, the IASB’s Amendments were adopted in the EU in November 2017. The EU Regulation not only adopted the IASB Amendments but also increased the number of insurance companies in Europe eligible to use the deferral option by including special provisions for financial conglomerates.