LIC Weighs Regulatory Forbearance Ahead of IFRS Adoption

Life Insurance Corporation of India (LIC) is considering regulatory forbearance before implementing International Financial Reporting Standards (IFRS). The decision will be made post board approval. LIC is engaging with the regulator, evaluating the transition framework, and has communicated its stance. The IRDAI has allowed a 12-month forbearance to ease the transition.

The Life Insurance Corporation of India (LIC) is contemplating a regulatory pause before transitioning to International Financial Reporting Standards (IFRS), as disclosed by a senior official. The life insurance behemoth has been in dialogue with the regulator, considering options within the current framework.

R. Doraiswamy, LIC's managing director and CEO, highlighted that the board's approval is crucial before any official announcement. Internal governance will be adhered to, and the regulatory transition provision is under review. The Insurance Regulatory and Development Authority of India (IRDAI) previously sanctioned a one-year forbearance for the adaptation to new Indian Accounting Standards (Ind AS).

In related news, the LIC board has recently approved a bonus share issue in a 1:1 ratio, pending shareholder consent. The date for record finalization will align with shareholder approval steps. The corporation plans to capitalize a sum from its reserves to execute the bonus issuance.

(With inputs from agencies.)