Effective January 1, 2027 (for December fiscal year end filers)

Effective November 1, 2027 (for October fiscal year end filers)

With the release of the final IFRS 18 regulatory returns, Canadian insurers now have a complete picture of how the new accounting standard will impact regulatory reporting in 2027.

Until now, the information available to insurers was limited to the Statement of Profit and Loss updates published by OSFI in July. The newly released 2027 returns provide important additional insight into how those changes will flow through the Core Financial Statements, the Quarterly and Annual Supervisory returns and the Provincial Return.

The good news?

‍The supervisory return changes generally align with what many filers would have expected based on the published Statement of Profit and Loss revisions. However, there are still important impacts to data mapping, reporting processes, validation rules, and supporting schedules that organizations should review well before the first IFRS 18 filing period.

What is IFRS 18?

IFRS 18, Presentation and Disclosure in Financial Statements, introduces a more structured presentation of financial performance through three required categories: Operating, Investing, and Financing activities.

What has changed?

The publication of the final regulatory returns confirms that the impact extends beyond the Statement of Profit and Loss.

1. New Reporting Requirements:

‍Some schedules now include additional rows and reporting requirements to support the new IFRS 18 presentation structure.

2. Updated Terminology:

‍Several return pages have been updated with revised labels, descriptions, and reporting instructions.

3. Alignment Across Returns:

The quarterly and annual supervisory returns have been updated to maintain consistency with the revised Statement of Profit and Loss presentation.

In addition to the reporting updates, filers should be aware that the related validation rules have been revised to align with the IFRS 18 changes.

Please refer to the Appendix below for a summary of the changes to the pages of the regulatory returns.

What should insurers do now?

• Review how income and expense accounts map to the new IFRS 18 presentation categories.
• Identify affected quarterly and annual return schedules.
• Assess whether reporting processes, templates, and controls require updates.
• Review revised validation requirements and perform testing before the first 2027 filing cycle.

How SETpro is supporting insurers

At SETpro, we have already begun implementing the IFRS 18 changes across our Pro tools and reviewing the impacts on regulatory reporting requirements. Through that work, we have developed a detailed understanding of the published return updates, supporting schedules, and validation changes.

We are also preparing an IFRS 18 Impact Cheat Sheet to help filers quickly identify:

• Affected return pages
• Reporting changes
• Validation considerations
• Areas where mappings or signage should be reviewed

If you are assessing the impact of IFRS 18 on your organization and have questions about the published changes, we would be happy to discuss them. Until then, please keep an eye out for our IFRS 18 Impact Cheat Sheet.

Appendix: Summary of the IFRS 18 Changes to Pages of the Regulatory Returns