EFRAG comments on IFRS 9 mitigation for insurers

The European Commission’s advisor has sent in its final comment letter on the IASB’s proposed temporary measures to address the consequences of the new insurance standard being applied two years after IFRS 9 Financial Instruments. EFRAG’s position has changed to the extent that it is now more accepting of the ‘overlay’ approach, but it still prefers the ‘deferral’ approach and proposes extending it to a wider population, and applying it below the level of consolidated accounts.