The IASB issued an Exposure Draft (ED) on 28 July 2021 on a proposed narrow-scope amendment to IFRS 17 to permit a classification overlay for financial assets in the comparative period if certain conditions are met. Numerous (re)insurers have not yet applied IFRS 9 Financial Instruments  as they intend on applying it concurrently with IFRS 17. However, the two standards differ in terms of their respective requirements concerning comparative information that will be presented on initial application. IFRS 17 requires (re)insurers to present one restated comparative period upon application of the standard. IFRS 9 permits, but does not require, the restatement of comparative periods.

The primary proposal in the IASB's ED is a proposed narrow-scope amendment to the transition requirements of IFRS 17 for (re)insurers that first apply IFRS 17 and IFRS 9 at the same time. The proposed amendment will allow entities to present comparative information about a financial asset as if the classification and measurement requirements of IFRS 9 had been applied to the financial asset previously. The IASB plans to finalise any resulting amendment by the end of 2021.

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