Superseded by IFRS 17: Insurance Contracts, para.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.
BC237 An insurer applying the overlay approach applies IFRS 9, and consequently provides:
(a) the significantly improved information about financial instruments that results from applying IFRS 9, in particular information on credit risk, that will enable improved analysis by users of financial statements; and
(b) information about financial instruments that is comparable to the information provided by entities that apply IFRS 9 without the overlay approach.
BC238 Furthermore, the overlay approach provides additional information to users of financial statements that will enable them to understand the effects of applying IFRS 9 to the designated financial assets. Applying the overlay approach, an insurer adjusts profit or loss for the designated financial assets so that it reports the same overall amount that it would ha
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