The European Securities and Markets Authority (ESMA) has issued a Public Statement on the transparency of disclosures on the adoption of IFRS 17 Insurance Contracts.
The Public Statement highlights the importance of entities providing users of their financial statements with information that enables users understand the expected accounting implications of the new Standard’s application.
ESMA’s recommendations cover the disclosures of expected impacts of the initial application of IFRS 17 in the interim and annual financial statements for 2022. ESMA expects management, directors and Audit Committee members and auditors to take into account these recommendations when preparing, approving and reviewing/auditing half-yearly and annual financial statements for 2022.
In line with past major Standards (IFRS 9 and IFRS 15), in the year prior to their effective date ESMA provides a roadmap to help issuers in providing the disclosures on expected impacts of new, but not yet effective, Standards, as required by IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
ESMA’s Public Statement is available here.