Superseded by IFRS 17: Insurance Contracts, para.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.
BC288 The financial statements of insurers that apply the overlay approach or the temporary exemption from IFRS 9 will not be directly comparable with entities that apply IFRS 9. Furthermore, making those two approaches optional also reduces comparability among entities. However, the Board has sought to mitigate the concerns about comparability by deciding the following:
(a) the effect of the overlay approach must be presented as a separate line item in profit or loss and in OCI, separately from other components of OCI. This will help users of financial statements to compare entities that apply the overlay approach and those that apply IFRS 9 without the overlay approach.
(b) the scope of the temporary exemption is restricted with the intention that any reduction in comparability affects only peers within the insurance
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