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Summary of changes from ED 5 (para. BC227)

Superseded by IFRS 17: Insurance Contracts, para. C34, May 2017, for annual periods beginning on or after 1 January 2023. Earlier application is permitted, see App. C.

BC227 The following is a summary of the main changes from ED 5 to the IFRS. The Board:

(a) clarified aspects of the definition of an insurance contract (paragraphs BC36 and BC37).

(b) clarified the requirement to unbundle deposit components in some (limited) circumstances (paragraphs BC40–BC54).

(c) deleted the ‘sunset clause’ proposed in ED 5 (paragraphs BC84 and BC85).

(d) clarified the need to consider embedded options and guarantees in a liability adequacy test (paragraph BC99) and clarified the level of aggregation for the liability adequacy test (paragraph BC100).

(e) replaced the impairment test for reinsurance assets. Instead of referring to IAS 36 (which contained no scope exclusion for reinsurance assets before the Board issued IFRS 4), the test will refer to IAS 39 (paragraphs BC107 and BC108).

(f) del

Comparing proposed amendment...