FI proposes IFRS 18 accounts rules for insurers from 2027

Finansinspektionen has proposed amending its annual-accounts rules for insurance undertakings and occupational pension companiesFAR so that references to IAS 1 are replaced with references to IFRS 18FAR. The amendments would enter into force on 1 January 2027FAR and apply to financial years beginning then or laterFAR. The proposal concerns undertakings that report under lagen (1995:1560) om årsredovisning i försäkringsföretagGOV, the act that governs annual accounts for insurance undertakings, within the framework where Finansinspektionen issues detailed accounting rules under government authorisation in förordning (1995:1600).

IFRS 18 is the new presentation standard that replaces IAS 1FAR, Utformning av finansiella rapporter. It restructures how income and expenses are grouped in the income statement, with operating, investing and financing categories alongside tax and any discontinued operations, replacing today's looser split of operations, net financial items, tax and discontinued operations. The standard also sets stricter principles for which items may be aggregated and which must be shown separately, and requires note disclosure of management-defined performance measures. Preparers may need to update charts of accounts and reporting instructions so postings map into the new categories, and to analyse existing items and transactions against the new classification while classification questions are still being discussed.

The proposal matters beyond the insurance and pension sector because every group applying IFRS is affected by the standard and needs to start reading in and organising the transition work now. For the supervised undertakings, the practical consequence is a two-track supervisory reporting solution during the first two quarters of 2027FAR: they may either continue reporting solely in FINREP or use a dedicated IFRS 18 module for certain reporting templatesFAR. The arrangement is interim pending an updated FINREP version, expected from the third quarter of 2027FAR, so template-by-template reporting duties in the first half of 2027 depend on which track the undertaking choosesFAR.

The proposal is out as a draftFAR; the roundup states no consultation deadline. Until FI finalises the rules, preparers should track the consultation, form a working group and communicate new reporting instructions internally.

Legal basis: IFRS 18 (replacing IAS 1); lagen (1995:1560) om årsredovisning i försäkringsföretag; förordning (1995:1600) om årsredovisning i kreditinstitut, värdepappersbolag och försäkringsföretag; Finansinspektionen's proposed amendments to its årsredovisningsföreskrifter för försäkringsföretag och tjänstepensionsföretag with application from 1 January 2027.