Insurance Regulatory Authority: Implementation of IFRS 18 starting 2027

The Insurance Regulation Unit issued a circular requiring companies under its supervision to apply International Financial Reporting Standard (IFRS) 18 on Presentation and Disclosure in Financial Statements for annual and interim financial periods beginning on January 1, 2027, with comparative data for 2026 being restated. The unit affirmed its right to hold non-compliant companies accountable and to take legal action against them.

Circular No. (23) of 2026, issued on November 1, outlined the requirements for implementing the new standard, including full compliance with its transitional provisions and presentation and disclosure requirements, as well as adherence to comparative information requirements. The start date of the financial period was specified as the benchmark for applying these provisions.

The unit urged relevant companies to take necessary internal measures to ensure their technical and accounting readiness prior to the implementation date, including updating related policies, procedures, and systems, and coordinating with external auditors regarding implementation and disclosure requirements.

Furthermore, the circular mandated external auditors, when auditing or reviewing financial statements, to assess companies’ compliance with International Financial Reporting Standards (IFRS) 17 and IFRS 18, and to disclose in their reports, whenever required by relevant professional standards, any material non-compliance that affects the financial statements or accompanying disclosures.