Superseded by IFRS 17: Insurance Contracts, para.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.
BC297 The overlay approach and the temporary exemption from IFRS 9 may increase the costs of analysis for users of financial statements, particularly if a user of financial statements invests across insurance and other sectors. This is because the Amendments to IFRS 4 reduce comparability, especially as the temporary exemption and the overlay approach are optional. The Board has sought to mitigate this concern as described in paragraph BC288.
BC298 Furthermore, the Board observed that the overlay approach would provide mitigating benefits for users of financial statements because it allows an insurer to address concerns about the different effective dates of IFRS 9 and the forthcoming insurance contracts Standard in a transparent manner, while applying the improved financial reporting requirements in IFRS 9.
BC299 The
…