Anita Somani
Partner & Leader
US Assurance and Capital Markets
US Assurance and Capital Markets
Overview
The new standard on ‘Insurance Contracts’ is effective for annual periods beginning on or after 1 January 2023. The transition date is the beginning of the annual reporting period immediately preceding the date of initial application, which is the date at the beginning of the annual reporting period in which an entity first applies IFRS 17.
In India, the date of adoption is to be notified by the Ministry of Corporate Affairs (MCA)/ Insurance Regulatory and Development Authority of India (IRDA).
The standard is relevant not only for insurance companies but also for non-insurers. Performance bonds, warranties issued with respect to products not sold by the entity, indemnities issued by a vendor in a sale of its business or assets, guarantees of minimum quantities, and certain fixed-fee service contracts may also need to be evaluated under the applicable guidance.