BC330A In June 2020, the Board amended IFRS 17 to require an entity to present separately in the statement of financial position the carrying amount of portfolios of insurance contracts issued that are assets and portfolios of insurance contracts issued that are liabilities. Before the amendment, IFRS 17 required an entity to present separately groups of insurance contracts issued that are assets and groups of insurance contracts issued that are liabilities (see paragraph BC328). The amendment also applies to portfolios of reinsurance contracts held.

BC330B The presentation requirement prior to the amendment was consistent with the requirements for recognising and measuring groups of insurance contracts. However, entities implementing IFRS 17 told the Board that they would need to allocate some fulfilment cash flows to groups only for the purpose of presentation (for example, fulfilment cash flows for incurred claims). These entities said that an amendment to require an entity to present insurance contracts at a portfolio level would provide significant operational relief. Feedback on the 2019 Exposure Draft, including from users of financial statements, suggested that the amendment would not significantly diminish the usefulness of information compared to that which would have been provided without the amendment.

Other approaches considered but rejected