ESMA publishes a report on first application of IFRS 17 Insurance Contracts

The European Securities and Markets Authority (ESMA) has released a report titled 'From black box to open book?' which provides recommendations for issuers preparing their annual financial statements. The report focuses on the first-time application of the International Financial Reporting Standard (IFRS) 17 Insurance Contracts in the 2023 financial statements of European insurance companies. ESMA and National Competent Authorities (NCAs) observed the application of IFRS 17 in a sample of European insurance companies and identified areas for improvement. The report provides examples of disclosures that can help issuers visualize the application of certain IFRS 17 requirements. It also includes recommendations for issuers to improve their IFRS 17 disclosures. The report aims to assist issuers, auditors, and supervisory bodies in improving 2024 annual financial reports. Additionally, it will help investors better understand these reports. The report complements the recently published European Common Enforcement Priorities (ECEP) Statement. ESMA considers this document an essential tool for improving financial reporting transparency. The report is part of ESMA's efforts to promote transparency and consistency in financial reporting.