Insurance Authority Mandates Companies to Apply IFRS 18 Standard from 2027
The Insurance Authority issued a directive mandating companies to apply the IFRS 18 financial standard starting in 2027, with legal accountability.
Translated by Qiyas from الراي — Original source
- For annual and interim financial periods beginning on January 1, 2027, with comparative data for 2026 restated
- Holding non-compliant companies accountable and taking legal action against them
The Insurance Regulatory Unit issued a circular mandating 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 restated, affirming its right to hold non-compliant companies accountable and take legal action against them.
Circular No. (23) of 2026, issued on November 1, specified the requirements for implementing the new standard, including compliance with all its transitional requirements and presentation and disclosure requirements, as well as adherence to comparative information requirements, with the start date of the financial period serving as the benchmark for applying these provisions.
The circular also required external auditors, when auditing or reviewing financial statements, to assess the extent to which companies comply with the requirements of 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.
The Insurance Regulatory Unit emphasized that failure to comply with the circular’s requirements grants it the right to hold non-compliant companies accountable in accordance with the provisions of Law No. (125) of 2019 concerning the Regulation of Insurance and its executive regulations and amendments, as well as the decisions and circulars issued thereunder, alongside other relevant laws, to take the necessary legal actions.
