HFMA response / HFMA response to the HM Treasury consultation on the application of IFRS 17 to the public sector

IFRS 17 Insurance contracts is applicable to public sector organisations from 1 April 2025. HM Treasury's exposure draft sets out how the standard will be interpreted and adapted for the public sector.

The HFMA largely agrees with the proposals. The main issue for NHS bodies will be identifying those contracts where the body is providing insurance. Based on the experience of applying IFRS 16, it will take time to identify the examples of insurance contracts that NHS bodies may be party to. Engaging with non-finance colleagues who are involved in agreeing contracts takes time as everyone becomes familiar with the requirements of the standard.