International Financial Reporting Standard 17 Insurance Contracts (’IFRS 17′) was published by the International Accounting Standards Board in May 2017 and amended by it in June 2020 and in December 20211. IFRS 17 was endorsed for use in European Union countries on 19 November 2021 by Regulation 2021/2036 of the European Union.
The aim of the new standard is to introduce new uniform rules for the measurement of insurance and reinsurance contracts, ensuring greater comparability of reporting between providers of insurance products, and to provide a number of new disclosures for the use of financial statement users.
This standard is mandatorily applicable from 1 January 2023. IFRS 17 replaced IFRS 4 “Insurance Contracts”, which enabled entities to recognize insurance contracts according to the accounting principles based on the national standards.
IFRS 17 changed the recognition, measurement, presentation and disclosure of insurance contracts distributed by Group companies, both as products linked to, among others, mortgage loans, cash loans and leasing products, and as stand-alone products.
The Group has implemented the standard in the retrospective full and modified approach for the part of the portfolio.
The implementation of IFRS 17 as at 1 January 2022 resulted in an increase in the Group’s assets by PLN 582 million, liabilities by PLN 296 million and equity by PLN 286 million.
1 The amendment to the transition requirements in IFRS 17 allows companies to overcome one-time classification differences of comparative information of the previous reporting period upon initial application of IFRS 17 and IFRS 9 Financial Instruments.