The IRDAI has deferred the implementation of IndAS (Indian Accounting Standards) until the International Accounting Standards Board (IASB) issues final amendments to International Financial Reporting Standard 17 (IFRS 17).
The regulator had planned to implement an IndAS on insurance contracts, that is the equivalent of IFRS 17, as well as IndAS 109, relating to financial instruments, from 1 April, but the IASB decided to amend IFRS 17, due to concerns raised around accounting treatments, operational complexity and implementation challenges aired by various stakeholders.
“While the insurance sector was preparing to implement IndAS, it was noted that the IASB has taken a considered view to amend IFRS 17. The IASB has indicated that it aims to issue the final amendments in mid-2020,” the regulator said.
“Once the standard equivalent to IFRS 17 is notified in India, IRDAI will be in a position to notify the regulations on the preparation of IndAS-compliant financial statements. Several other regulations that may be impacted because of the implementation of IFRS 17 may also have to be modified appropriately,” the IRDAI said.