IFRS 18: Presentation and Disclosure Standard impact on Federally Regulated Insurer Reporting to OSFI

What's changing

IFRS 18 Presentation and Disclosure in Financial Statements is an international financial reporting standard (IFRS) that takes effect in 2027. IFRS 18 introduces new presentation and disclosure requirements for financial statements. Federally regulated financial institutions report under IFRS and will be applying the new standard. OSFI is updating its regulatory returns for insurers to align with these changes and support consistent reporting.

When it takes effect

IFRS 18 applies to annual reporting periods beginning on or after January 1, 2027.

Filings using the revised OSFI regulatory returns will be expected starting with fiscal Q1 2027.

New statement of profit or loss structure

IFRS 18 introduces three categories for the statement of profit or loss.

• Operating
• Investing
• Financing

OSFI has updated its regulatory returns templates for insurers to reflect these categories, providing a preview of the anticipated final templates. Insurers are expected to determine their main business activities based on the nature of their operations. Activities that support an insurer's core business may be included in the operating category.

Updated statement of profit or loss for each insurer sector

Refer to regulatory return templates in Excel format below:

• Statement of profit or loss for Life (XLSX, 17 KB)
• Statement of profit or loss for P&C (XLSX, 17 KB)
• Statement of profit or loss for MI (XLSX, 18 KB)

For questions or comments on these returns, contact APD-DPC@osfi-bsif.gc.ca.

How OSFI's templates apply

OSFI's insurance regulatory returns follow IFRS 18 and use a structured format to ensure consistency across insurance institutions for regulatory reporting.

Core activities related to an insurer's main business operations are grouped within the operating category. Because of this structured approach, OSFI has designed one standardized regulatory return template, which is similar across the insurance industries.

The updated design reflects feedback from select industry participants and external auditors.

Use of judgement and disclosure requirements

Institutions retain flexibility to apply their own classification judgments, disclosure requirements, or documentation standards. OSFI will not be issuing guidance in these areas.

Institutions should consult their external auditors to support consistent application of IFRS 18. OSFI will provide updated filing instructions and validation rules where needed.

Updates to reporting templates

Most changes affect the core financial return, especially the statement of profit or loss. Some supporting schedules have also changed so that the totals in those schedules align with the revised statement of profit or loss.

Impact on OSFI's supervisory analysis

OSFI supervisory analysis will not change materially because of the changes to IFRS presentation.

Next steps

Final regulatory returns for each insurer sector will be published as part of OSFI's Third Quarterly Release, September 21, 2026.