Insurance firms required to implement IFRS 18 from January 2027
. . . violators face legal action over non-compliance
The Insurance Regulatory Unit has instructed all companies under its supervision to implement the International Financial Reporting Standard (IFRS 18) on the presentation and disclosure of financial statements, starting with annual and interim reporting periods from January 1, 2027. Companies must also restate comparative financial information for 2026.
Circular No. 23 of 2026, issued on November 1, sets out the requirements for implementing the new standard, including compliance with its transitional provisions, presentation and disclosure rules, and requirements for comparative information.
The unit called on the companies concerned to take the necessary internal measures to ensure their technical and accounting readiness ahead of implementation. These measures include updating relevant policies, procedures and systems, and coordinating with external auditors on implementation and disclosure requirements.
The circular also requires external auditors, when auditing or reviewing financial statements, to assess companies’ compliance with International Financial Reporting Standards (IFRS 17) and IFRS 18. Auditors must disclose any material non-compliance affecting financial statements or accompanying disclosures in their reports, where required under relevant professional standards.
The Insurance Regulatory Unit warned that companies failing to comply with the circular’s requirements could be held accountable under Law No. 125 of 2019 on Insurance Regulation, its Executive Regulations and amendments, as well as relevant decisions, circulars and other applicable laws. The unit affirmed its right to take the necessary legal action against violators.
The circular is part of the unit’s efforts to regulate insurance activities and strengthen compliance with local and international requirements, while promoting transparency in the presentation and disclosure of financial information.
