Public Notice: IFRS 17 – Insurance Contracts and Samoa’s Adoption Process

SUÁ & Associates wishes to advise clients, regulators, and the public that Samoa is preparing for the formal adoption of IFRS 17 – Insurance Contracts, following global implementation of the standard by the International Accounting Standards Board (IASB) for annual reporting periods beginning on or after 1 January 2023.

In Samoa, the adoption of international standards occurs only through formal approval by the Samoa Institute of Accountants (SIA). SIA is currently conducting sector-wide consultations, and industry training sessions have been scheduled for December 2025 to ensure adequate readiness across preparers, auditors, regulators, and insurers.

SIA’s formal adoption notice for IFRS 17 will be issued after these trainings.
Until that notice is published, Samoa remains under the existing standard:

 IFRS 4 Insurance Contracts continues to apply in Samoa at this time.

Clarification on Deferral and Firm-Level Decisions

We wish to emphasise the following for the benefit of all reporting entities:

• Individual audit firms or clients cannot choose to defer or opt-out of IFRS 17 on their own.
• IFRS 17 becomes mandatory in Samoa only when SIA formally adopts the standard and sets an effective date for local preparers. (Jurisdictional Adoption Model)
• Any transition timing will be determined solely by SIA, not by preparers, auditors, or regulators independently.

The correct position for all entities at this stage is:

“Awaiting SIA’s formal adoption notice for IFRS 17. Until then, IFRS 4 remains applicable.”

This ensures compliance with Samoa’s statutory adoption framework under the SIA Act and avoids premature, inconsistent, or unauthorised application of the new standard.

About IFRS 17 – Key Changes

IFRS 17 introduces a comprehensive, principle-based model for reporting insurance contracts, replacing IFRS 4. Major changes include:

• current-estimate measurement of insurance liabilities
• Contractual Service Margin (CSM) to recognise unearned profit
• explicit risk adjustment
• enhanced cash-flow modelling
• updated revenue recognition based on services provided
• expanded disclosures and reconciliations
• optional simplified measurement for short-duration contracts (PAA), highly relevant for Samoa’s general insurance sector

These changes will significantly improve transparency, comparability, and consistency in insurance reporting.

Support for Samoa’s Transition

SUÁ & Associates is working closely with industry stakeholders to support a smooth transition to IFRS 17 once adoption is formalised. Our services include:

• impact assessments and readiness reviews
• modelling support for GMM, PAA, and VFA approaches
• actuarial collaboration and risk adjustment methodologies
• system and data transformation support
• transition approach analysis (full, modified, or fair value)
• training for boards, CFOs, and audit committees

We will provide further public updates once SIA issues the official IFRS 17 adoption notice and effective date.