I&P Denmark applauds new IFRS 17 accounting standard

Insurance and Pension Denmark (I&PD) has praised the introduction of the new accounting standard, International Financial Reporting Standards (IFRS) 17, which will be used by listed companies in the European Union (EU).

The Danish pension lobby said the news brings “joy to the insurance and pensions industry” as it believes the new standard will create increased transparency for company accounts.

The new accounting standard for listed companies in the EU must be applied for financial years starting on 1 January 2023. The standard has taken 20 years to develop and another four years to gain EU approval.

“We are incredibly pleased that the EU has finally approved the new accounting standard that makes financial reporting more consistent and comparable. It will increase transparency for our investors. In addition, it will contribute to a better understanding of the insurance and pension industry's business model,” I&PD CEO, Kent Damsgaard, said.

I&PD said that together with the European insurance industry, it has fought a fierce battle to add the option of not applying the grouping requirement referred to as the ‘annual cohorts’. The EU has accepted this demand, and it is to the great delight of the Danish life insurance companies.

“The change in the requirement for the annual cohorts has been greatly demanded by life companies. Both because the requirement will not add significant information value to the accounts, and because the implementation and ongoing operation of the annual cohorts would entail significant costs. We are really pleased that the EU has listened to the Danish requirements and that it has succeeded in finding an acceptable solution,” Damsgaard added.

The solution means that it is optional for companies whether to use IFRS 17, as issued by the International Accounting Standards Board (IASB), or whether to use IFRS 17 with the amendment given in the EU. If IFRS 17 is used outside the EU, it must be used as issued by the IASB. The European Commission must review the exemption from the requirement to use the annual cohorts by 31 December 2027.

IFRS 17 is implemented as a supplement to the IAS Regulation. This means that the standard is directly applicable to the companies covered and that there is no requirement for implementation in Danish regulation. There is therefore no formal requirement that the executive order on accounting is adapted to the new accounting standard.

    Share Story:

Recent Stories


An overview of growth investing
European Pensions Editor, Natalie Tuck, speaks to American Century Investments (ACI), Vice President, Senior Client Portfolio Manager, Kevin Lewis on growth investing.

They discuss how it has performed in 2021, and its outlook, going forward. They also cover ACI’s differentiated growth approach to the investment universe, and how this capitalises on market inefficiencies, as well as how ACI’s team is equipped to invest in this manner.
Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.

Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows