United States

FASB Discusses Discount Rate for Long-Duration Insurance Contracts

Nov 24, 2014
From the Financial Reporting View

This edition of Issues & Trends In Insurance reports that the FASB recently discussed five alternative approaches to determine what discount rate should be used to measure long-duration insurance contracts. The FASB decided to require the discount rate to be determined using a reference portfolio of high-quality, fixed-income investments, which is consistent with the approach used in measuring pension liabilities.

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