Addis Ababa, 03/12/2024- The Accounting and Auditing Board of Ethiopia (AABE) recently convened a meeting with leaders of the Ethiopian Insurance Association to discuss the critical implementation of International Financial Reporting Standard 17 (IFRS 17). This standard, which introduces significant changes to insurance contract accounting, is essential for enhancing transparency and comparability in financial reporting.
During the discussions, Ato Fekadu Agonafer, A/Director General of AABE and his officials emphasized the importance of timely and effective adoption of IFRS 17, highlighting its potential to improve the financial health of insurance companies and bolster investor confidence with noting that non-compliance has consequences. The meeting served as a platform for stakeholders to express their concerns regarding the challenges of transitioning to the new standard, including implementation cost, hiring effective consultant and staff training needs.
Leaders from the Ethiopian Insurance Association shared their insights on the attempts made of their implications of the standard and expressed significant concerns regarding capacity and relevant resource challenges in implementing International Financial Reporting Standard 17 (IFRS 17). As the January 1, 2023 deadline has passed, the officials highlighted that many insurance companies are struggling with the complexities of the new standard.
The implementation deadline for IFRS 17 was set for January 1, 2023 that aligns with the global implementation timeline established by the International Accounting Standards Board (IASB).