Commission Regulation (EU) No 2017/1988 of 3 November 2017

The Commission Regulation (EU) No 2017/1988 of 3 November 2017, published in the Official Journal of the European Union L 291 on 9 November 2017, adopts Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts. The amendments to IFRS 4 aim to address the temporary accounting consequences of the different effective dates of IFRS 9 and the new standard for insurance contracts replacing IFRS 4 (IFRS 17).

A financial conglomerate as defined in Article 2(14) of Directive 2002/87/EC may elect that none of its entities operating in the insurance sector within the meaning of Article 2(8)(b) of that Directive apply IFRS 9 in the consolidated financial statements for financial years the commencement of which precedes 1 January 2021 where all of the following conditions are met:

(a) no financial instruments are transferred between the insurance sector and any other sector of the financial conglomerate after 29 November 2017 other than financial instruments that are measured at fair value with changes in fair value recognised through the profit or loss account by both sectors involved in such transfers;

(b) the financial conglomerate states in the consolidated financial statements which insurance entities in the group are applying IAS 39;

(c) disclosures requested by IFRS 7 are provided separately for the insurance sector applying IAS 39 and for the rest of the group applying IFRS 9.

Each company shall apply the Amendments to IFRS 4 as from the commencement date of its first financial year starting on or after 1 January 2018.

However, a financial conglomerate may choose to apply the Amendments to IFRS 4 subject to the above-mentioned conditions, as from the commencement date of its first financial year starting on or after 1 January 2018.