(paragraphs C6-C19A of IFRS 17)

BC379 Although many entities may not have sufficient information for retrospective application of IFRS 17, the Board was told that, in many cases, entities may have much of the information needed, and that some entities may face only a small number of limitations on retrospective application. In such situations, the Board concluded that more comparable information about insurance contracts could result if an entity were permitted to modify retrospective application only when needed because it lacked information to apply a fully retrospective approach. Furthermore, the Board concluded that an entity should:

(a) use the minimum modifications necessary for achieving the closest outcome to retrospective application that is possible using reasonable and supportable information; and

(b) be prohibited from disregarding any reasonable and supportable information that could be used in the retrospective application of IFRS 17 if that information is available without undue cost or effort.

BC380 The Board decided to specify some modifications that could be applied if retrospective application as defined in IAS 8 is impracticable, to address the issues noted in paragraph BC378. Those modifications are permitted only to the extent necessary because an entity does not have reasonable and supportable information to apply the retrospective approach. Those modifications: