Document ID: chunk:federal_register_of_legislation:F2023L00015:reg:21:p78
Version: federal_register_of_legislation:F2023L00015
Segment Type: reg
Provision Reference: reg 21 (pt 78/101)
Character Range: 246571–249425

IFRS 17 for the period 1 July 2025 to 30 June 2026, with comparative information for the period 1 July 2024 to 30 June 2025.

     BC256        Consistent with existing practice, the Boards also decided to propose that entities would be permitted to apply AASB 17/PBE IFRS 17 earlier and, if an entity does apply the Standard early, it must disclose this fact.

Effective date of the Standard – AASB ED 319/NZASB ED 2022-3 feedback and Boards' conclusions

     BC257        Most respondents to AASB ED 319/NZASB ED 2022-3 supported the proposed application date, provided the Boards meet the planned timetable of having an Amending Standard issued by the end of December 2022. Entities that had the greatest concerns about the proposed effective date(s) were either currently applying AASB 137[25] or were also facing other substantive regulatory changes in the near term.

     BC258        The Boards noted that, in responding to the Draft Standard of the amendments to AASB 17/PBE IFRS 17 issued in October 2022 for fatal-flaw review comment, some stakeholders expressed the view that the effective date should be extended for a further year. In order to gauge views on the effective date, the Boards conducted informal outreach with key constituents in November 2022 on whether the effective date should be extended for a year. While most respondents had no specific preference for either a 2025 or 2026 transition date, some stakeholders considered that the additional time would be of great value to facilitate:

          (a) the update of information systems and data collection processes for arrangements falling within the scope of AASB 17/PBE IFRS 17 that currently classify their liabilities as provisions and, in some cases, when coverage periods need to be determined based on contracts issued by private sector insurers; and

          (b) the ability to engage with key users of their financial information on the changes to their financial statements from transitioning to AASB 17/PBE IFRS 17, including in terms of budgetary processes.

     BC259        On balance, the AASB concluded that the effective date should be annual reporting periods beginning on or after 1 July 2026 and the NZASB concluded it should be annual periods beginning on or after 1 January 2026, which will result in the Standard being effective for the same annual reporting periods in both jurisdictions. The Boards consider it is appropriate to extend the effective date on the basis that:

          (a) although the 2025 effective date would have provided approximately 18 months between the issue of the Amending Standard and the beginning of the comparative period to which AASB 17/ PBE IFRS 17 would apply mandatorily, the transition effort will be much greater for some public sector entities than for others; and

          (b) although a number of the