Insurance Regulatory and Development Authority of India (Irdai) decides to defer implementation of IndAS in the insurance sector
The Insurance Regulatory and Development Authority of India (Irdai) has decided to defer the implementation of IndAS (Indian Accounting Standards) in the insurance sector until the International Accounting Standards Board (IASB) issues final amendment to International Financial Reporting Standard 17 (IFRS 17)
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.
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.
Therefore, the regulator in its meeting last month decided to implement IndAS 109 and IndAS equivalent of IFRS 17 simultaneously, along with all other applicable IndAS. “The effective date of implementation shall be decided after the finalization of IFRS 17 by IASB