The Hong Kong Federation of Insurers (HKFI) has requested a two-year delay in the implementation of IFRS 17, to give its members more time to adapt to the global accounting standards regarding the reporting of accounts.
In its latest monthly newsletter, the HKFI said that the European Financial Reporting Advisory Group has proposed to further defer the adoption date of IFRS 17 to 2023, while Hong Kong is planning to implement the standard on January 01, 2021
“This will render Hong Kong operating to an implementation timetable not consistent with the other international insurance centres and faced with all the possible downsides,” the federation noted.
“In the light of such an international development and the fact that our member companies found the current timeline exceedingly challenging, we have written to the Hong Kong Institute of Certified Public Accountants (HKICPA) again, urging them to consider postponing the effective date of IFRS 17 for Hong Kong insurers to January 01, 2023.”
The International Accounting Standards Board (IASB) set January 01 2022 as the effective date for IFRS 17, subject to confirmation. Last year, several insurance associations pushed for an extension to the implementation of the standard.
In May, the IASB published an amendment to IFRS 17, following consultations with the insurance industry. Following these changes, global brokerage and advisory firm Willis Towers Watson said that the amendments will create additional work to implement, given that insurers have already spent considerable time and effort on the previous version.
