Insurance Europe has responded to a consultation by the International Accounting Standards Board (IASB) on its upcoming workplan, which aims to gather stakeholders’ views on issues such as the strategic direction and balance of the IASB’s activities, and its priorities in terms of financial reporting issues.
Insurance Europe said that the current level of focus on the IASB’s main activities is appropriate to achieve its main objective of maintaining high-quality International Financial Reporting Standards (IFRS).
However, the IASB should reassess the feasibility of fully completing all the projects in its current workplan and consider re-prioritising some of the projects.
Specifically, the IASB should focus on the respective post implementation reviews of standards. These are essential as they provide the opportunity for stakeholders to provide feedback on whether standards are working as initially intended by the IASB and whether they are cost-effective for preparers. In particular, Insurance Europe emphasised the need to plan the post implementation review of IFRS 17— Insurance Contracts, which is due to apply as of 1 January 2023.
Another important aspect of the IASB’s work is its ability to respond swiftly to important emerging issues. This includes, for example, when new important standards are implemented for the first time (eg IFRS 17, IFRS 9—Financial Instruments) and when economic or environmental conditions change in an unexpected and/or rapid way creating operational challenges for reporting entities.
Insurance Europe added that the following key three projects should be tackled by the IASB as a priority: