(paragraphs C1 and C2 of IFRS 17)

BC405 IFRS 4 permitted an entity to change its accounting policies for insurance contracts if it showed that the change resulted in more relevant or reliable information. As a result, IFRS 4 would have permitted an entity to apply the requirements in IFRS 17, except for the requirements relating to other comprehensive income and transition relief. Accordingly, the Board concluded that it would be inappropriate to prohibit early application of IFRS 17.

BC406 However, because IFRS 17 was developed in the context of IFRS 15 and IFRS 9, and given the extent of changes the Board expects will be needed to apply IFRS 17, the Board concluded that an entity should be permitted to apply IFRS 17 only when it also applies IFRS 15 and IFRS 9. [In June 2020, the Board amended IFRS 17. The reference to IFRS 15 in paragraph C1 of IFRS 17 was deleted, because IFRS 15 was effective at the time the June 2020 amendments were issued.]