Application of Philippine Financial Reporting Standard (PFRS) 17 – Insurance Contracts in the Audited Financial Statements (AFS)
Background
The Insurance Commission has issued Circular Letter No. 2024-19 and 2024-20 for the application of PFRS 17 - Insurance Contracts in the AFS of Mutual Benefit Associations (MBAs) and Health Maintenance Organizations (HMOs).
Application of PFRS 17
All MBAs shall adopt PFRS 17 starting January 1, 2030. Meanwhile, all HMOs shall adopt PFRS 17 starting January 1, 2027. However, both MBAs and HMOs are not precluded from implementing PFRS 17 in their AFS before the effectivity date.
Disclosure Requirements
MBAs and HMOs shall disclose in the notes to the financial statements the disclosure requirements of the Philippine Accounting Standard (PAS) 8 - Accounting Policies, Changes in Accounting Estimates, and Errors in relation to the impending adoption of new accounting standards (e.g., PFRS 17).
PFRS 17 Preparedness Assessment for HMOs
HMOs shall submit the PFRS 17 Preparedness Assessment Report which aims to monitor the progress in the preparation for the PFRS 17 adoption. The report shall be submitted quarterly with the Interim Financial Statements starting January 15, 2025 and thereafter on or before 15 days after the last day of the quarter.
Please see attached articles for further information.
IC Circular Letter No. 2024-19
