Commission Regulation (EU) 2023/1803 of 13 August 2023 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance)

On September 26, 2023, new Commission Regulation (EU) 2023/1803 as regards the adoption and application of international accounting standards in the EU was published in the Official Journal (OJ) of the EU. The regulation modifies and subsequently repeals and replaces Regulation (EC) No 1126/2008 which sets out the international accounting standards to be applied by public companies in accordance with Regulation (EC) No 1606/2002.
Specifically, the 2023 regulation provides for an exemption from the so-called „cohort requirement“ in relation to International Financial Reporting Standard (IFRS) 17 concerning insurance contracts which requires the grouping of insurance contracts for measurement and disclosure purposes under IFRS 17. Cohorts or „cohort groups“ are thereby used to calculate and present the financial results of insurance contracts in a way that reflects their underlying economics and the risk-sharing characteristics among policyholders.
Specifically, firms will be exempt from this requirement for – as quoted
(a) groups of insurance contracts with direct participation features and groups of investment contracts with discretionary participation features as defined in Appendix A of IFRS 17 in the Annex to this Regulation, and with cash flows that affect or are affected by cash flows to policyholders of other contracts as laid down in paragraphs B67 and B68 of Appendix B of IFRS 17 in the Annex to this Regulation;
(b) groups of insurance contracts that are managed across generations of contracts and that meet the conditions laid down in Article 77b of Directive 2009/138/EC and have been approved by supervisory authorities for the application of the matching adjustment.
However, if such exemption is being relied upon, this fact must be disclosed in the footnotes to the financial statements.
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Subsequently, Regulation (EC) No 1126/2008 is entirely replaced for clarity purposes due to the fact that its has been revised numerous times and it would be hard to keep track of any current reporting standards and requirements.