Who created IFRS 17?

Who Created IFRS 17 and Why It Matters

The International Financial Reporting Standard 17—commonly known as IFRS 17—was created by the International Accounting Standards Board (IASB), the independent body responsible for developing and maintaining global accounting standards. This landmark standard specifically addresses how insurance contracts should be reported in financial statements, aiming to bring greater transparency and consistency across the industry.

First issued in May 2017 after more than a decade of development and consultation, IFRS 17 didn’t take effect immediately. Instead, it officially came into force at the start of 2023, marking a significant shift for insurers worldwide. The delay allowed companies time to adapt their systems, processes, and reporting models to meet the new requirements.

Prior to IFRS 17, accounting for insurance contracts varied widely between regions and companies, making it difficult for investors and regulators to compare financial health across the sector. With this standard, the IASB introduced a unified framework that requires insurers to recognize the profit or loss from insurance contracts in a more timely and realistic way, reflecting actual performance over time.

The rollout of IFRS 17 has been a major undertaking for the global insurance industry. It demands detailed data analysis, new valuation methods, and extensive disclosures—reshaping how financial results are presented. While challenging to implement, the standard is expected to improve trust and clarity in financial reporting, ultimately benefiting both businesses and stakeholders.

As of early 2024, the full impact of IFRS 17 is becoming clearer, with public financial statements now reflecting its influence. For the IASB, this milestone represents not just the end of a long development process, but the beginning of a new era in insurance accounting.