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UAE: Regulator lays out 3-phase implementation schedule for IFRS 17

Source: Middle East Insurance Review | Feb 2019

The UAE Insurance Authority (IA) has set out a three-stage plan for the implementation of the International Financial Reporting Standard for insurance contracts (IFRS 17) for all insurers operating in the country in order to facilitate a rapid and smooth transition, according to a circular issued by Mr Ebrahim Obaid Al Zaabi, director general of the IA.
 
In the first stage, insurers have to perform a gap analysis against the requirements of IFRS 17. This gap analysis is to be completed by 28 February 2019 and the circular sets out expectations as to the areas to be covered and reported on. It is to include an assessment of the financial impact and expected operational impact of the implementation of IFRS 17, reported Al Khaleej. The first report on the gap analysis is to be submitted to the IA on 15 March 2019.
 
All insurers must have a clear plan that will allow them to implement this standard by the end of 2020.
 
The second phase is related to the design of internal rules and processes to cope with IFRS 17 with regard to accounts, statements and other requirements.
 
The third phase is the implementation phase. At this stage, companies must implement the requirements of the standard, in addition to conducting a quarterly assessment of the results. They must also prepare financial reports from the end of 2020 according to the requirements of the IFRS 17 in parallel with financial reports prepared according to the current standard, IFRS 4.
 
The period from the beginning of 2020 until the end of 2021 will allow companies to resolve all the remaining obstacles to implementation of IFRS 17 so that all companies should be able to report their results using IFRS 17 only in 2022.
 
Last November, the International Accounting Standards Board voted to propose a one-year deferral of the effective date for IFRS 17 to 2022. The proposed deferral is subject to public consultation, which is expected this year. M 
 
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