(Appendix C of IFRS 17)

BC372 IFRS 17 includes specific requirements for applying the Standard for the first time. An entity is therefore required to apply the IFRS 17 transition requirements instead of the general requirements of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. [When it issued IFRS 18, the IASB changed the title of IAS 8.] In the light of the diversity in previous insurance accounting practices and the long duration of many types of insurance contracts, the Board decided that retrospective application of IFRS 17 provides the most useful information to users of financial statements by allowing comparisons between contracts written before and after the date of initial application of the Standard. Consistent with IAS 8, which requires retrospective application of a new accounting policy except when it would be impracticable, the Board concluded that entities should apply IFRS 17 retrospectively (see paragraphs BC374-BC378) and should be allowed to use alternatives only when retrospective application of IFRS 17 is impracticable. [In June 2020, the Board amended IFRS 17 to permit an entity that has the information to apply a fully retrospective approach to instead apply the fair value approach for transition for a group of insurance contracts with direct participation features when specified conditions relating to risk mitigation are met (see paragraph BC393A).]