The insurance regulator IRDAI has said it has granted extension of the time limit for the industry for reviewing the new standard (IFRS 17) up to 30thJune, 2018.
The Authority had constituted a Working Group on new standard equivalent to IFRS 17- Insurance Contracts of the International Accounting Standards Board (IASB), in Aug.2017. It was an initial step towards early adoption of the new standard in the insurance sector. The working group was advised to furnish its recommendations based on the specified terms of reference, within three months.
The group felt that the standard was very exhaustive, complex and introduced new concepts hitherto not applied and for which there was very limited experience to share even internationally. It was also felt that considering the magnitude of impact the implementation of the standard is likely to have on the Insurance industry in India, as well as the financial statements and disclosures of insurers, it requires a detailed study before implementation, said IRDAI..
“Therefore, in order to enable a more detailed examination of the provisions contained in the IFRS 17 by the working group, the IRDAI has decided to grant extension of the time limit for review of the new standard (IFRS 17) up to 30thJune, 2018, as requested by the working group,’’ said IRDAI..
The working group will furnish its report and recommendations to the IRDAI by 30thJune, 2018.