06/07/2020 - EFRAG's endorsement advice on the extension of the temporary exemption from Applying IFRS 9 (Amendments to IFRS 4)

EFRAG has submitted its endorsement advice relating to the extension of the temporary exemption from applying IFRS 9 Financial Instruments (Amendments to IFRS 4 Insurance Contracts) ('the Amendments') for use in the European Union and European Economic Area to the European Commission.

The objective of the Amendments is to allow qualifying entities to continue to defer the application of IFRS 9. Currently IFRS 4 requires insurance entities to apply IFRS 9 from 1 January 2021, the change will mean that IFRS 9 becomes effective for annual periods beginning on or after 1 January 2023, with earlier application permitted.

EFRAG assesses that the Amendments meet all the technical endorsement criteria of the IAS Regulation and are conducive to the European public good. It therefore recommends their endorsement. EFRAG's recommendation is explained in the letter to the EC and accompanying appendices here.

EFRAG has also updated its Endorsement Status Report which can be found here.