30. September 2020

EFRAG publishes DEA on IFRS 17

Today, EFRAG published the draft endorsement advice on IFRS 17. This brings a discussion process lasting more than two years to a close.

Already in the cover letter to the endorsement recommendation, EFRAG points out that the endorsement review is not entirely positive: In contrast to all other issues, the Board was unable to reach a consensus on the central topic of the annual cohorts. Nine members, including the ASCG, were in favour of an unconditional endorsement of IFRS 17 as issued by the IASB, while seven members expressed strong reservations. The two camps’ respective assessment of the endorsement criteria on this issue is set out in a separate annex attached to the draft advice. The comprehensive document can be obtained from EFRAG’s website and commented on until 29 January 2021 (EFRAG News).

The President of the ASCG, Prof Dr Barckow, comments on the publication as follows: “The discussions in the EFRAG Board were intense and controversial. I regret that we were not able to issue an unqualified advice on the endorsement of IFRS 17. This may increase the risk that Europe moves away from IFRSs, not only as regards the insurance industry, but potentially for companies in all sectors, and that is the political significance of this draft endorsement advice. In the Fitness Check, the German business community voted by a clear majority against unilateral changes to IFRSs as issued by the IASB; I hope that a similar clear signal will be conveyed in this dossier, too.”