Background
Ministry of Corporate Affairs, had on March 30, 2016 notified the road map for implementation of Ind AS for banks, insurers and NBFCs from accounting period beginning 01st April 2018.
Insurers were required to implement Ind-AS 104, Insurance Contracts from April 2018 which is equivalent to IFRS 4. Since IFRS 4 has been replaced by IFRS 17 therefore the Insurance Regulatory and Development Authority of India (IRDAI)through its circular IRDA/F&A/CIR/ACTS/146/06/2017 dated 28.06.2017 approved the Regulatory override whereby the implementation of Ind AS in the Insurance Sector in India has been deferred for a period of two years and the same have to be implemented from accounting period beginning from 1st April, 2020.
Latest Development
The IRDAI through its circular IRDAI/F&A/CIR/ACTS/023/01/2020 dated 21.01.2020 stated that in the phase where insurance sector was preparing to implement Ind AS, it was noted that the International Accounting Standard Board (IASB) has taken a considered view to amend IFRS 17: Insurance Contracts, due to the concerns raised around accounting treatments, operational complexity and implementation challenges raised by various stakeholders. The IASB has indicated that it aims to issue final amendments in mid-2020.
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