IRDAI to implement Ind AS in the Insurance Sector

Jan 24, 2020 | by Avantis RegTech Legal Research Team

Industry Specific Compliance

The Insurance Regulatory and Development Authority of India (IRDAI) on January 01, 2020, has decided to implement Ind AS 109 (Indian Accounting Standard 109) and Ind AS equivalent of IFRS 17 (International Financial Reporting Standard 17) along with other applicable Ind AS. The IFRS 17 is yet to be finalised by International Accounting Standards Board (IASB). IASB has noted amendments in IFRS 17 : Insurance contracts due to concerns raised around accounting treatments, operational complexity and implementation challenges raised by various stakeholders and shall notify the final standards. IRDAI has notified that IFRS 4 shall be replaced by IFRS 17, once the final standard is effective. Hence, implementing its equivalent (Ind AS 104) in the insurance sector in India, would involve avoidable costs and efforts. It may therefore not be desirable to implement Ind AS 104 in the insurance sector as an interim measure. The implementation of Ind AS 109 before implementation of equivalent of IFRS 17 equivalent may cause volatility in the financial statements because of asset liability mismatch.

[IRDAI Circular No. IRDAI/F&A/CIR/ACTS/023/01/2020]


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