On 19 March 2018 the annual exchange of views between the Committee on Economic and Monetary Affairs (ECON) of the European Parliament and the representatives of the IASB and the IFRS Foundation was significant in respect of information about IFRS 9 ‘Financial Instruments’ and IFRS 17 ‘Insurance Contracts’. During this annual exchange of views, the participants had the opportunity to discuss issues concerning the development of international accounting standards and their endorsement and application in Europe.
The focus of the initial statement of the IASB Chairman (Mr. Hans Hoogervorst) was inter alia on the new insurance financial reporting standard IFRS 17 Insurance Contracts, which is considered to be the IASB’s “most important standard”. This standard was published by the IASB in May 2017. After the endorsement of IFRS 9 Financial Instruments in 2016, the IFRS 17 standard constitutes the major financial reporting standard to be endorsed in the EU. It will have major effects on accounting in the insurance industry. It was explained that there had also been resistance against the new change and the high costs of implementing the standard were often cited. Certain practical issues, such as why it was perceived as it would be so difficult to implement, why companies had been against using current interest rates, why the time-limit of implementation of the standard had been too short, were also discussed.