A global standards body has proposed a one-year delay to implementing its new accounting rule aimed at increasing visibility in how insurers earn money, after the industry said it needed more time to prepare for such a sweeping change.
A spokeswoman for the International Accounting Standards Board (IASB) said that at a meeting on Wednesday the IASB backed a 12-month delay to January 2022.
The insurance sector demanded that the rule to be postponed until 2023. Public participation will be ensured about the proposed delay.
Last month, insurers around the world have called for a 20-year-long delay and change aimed at awarding national practices to open a “black box”.
”Although the IASB Board has at least a year when it is necessary to consider improvements in IFRS 17 and a delay yıl one year is not enough time to correct issues with IFRS 17 and to give insurance companies sufficient time to implement the standard, en he said Olav Jones, deputy director of insurance industry, Europe.
The IASB rules are used in more than 100 countries, including the European Union, but not in the United States.
The spokeswoman for the IASB said the board would discuss whether the actual amendments to the new rule are needed in December.
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