The Malaysian Accounting Standards Board (MASB) has today issued Initial Application of MFRS 17 and MFRS 9—Comparative Information (Amendment to MFRS 17 Insurance Contracts).
The Amendment is word-for-word Initial Application of IFRS 17 and IFRS 9—Comparative Information (Amendment to IFRS 17 Insurance Contracts) issued by the International Accounting Standards Board (IASB).
ABOUT THE PRONOUNCEMENT
The Amendment relates to the transition requirements of MFRS 17 only—it does not affect any other requirements of the Standard.
In view of the different transition requirements in MFRS 17 and MFRS 9 Financial Instruments, this can cause temporary accounting mismatches between financial assets and insurance contract liabilities in the comparative information presented on initial application of MFRS 17 and MFRS 9. The Amendment will help insurers to avoid these temporary accounting mismatches by providing insurers with an option for the presentation of comparative information about financial assets as if the classification and measurement requirements of MFRS 9 had been applied to that financial asset.
MFRS 17, including this Amendment, is effective for annual reporting periods beginning on or after 1 January 2023.
The “Notice of Issuance” can be downloaded here.
For enquiries, please contact: