United States

FASB Decides on Method to Amortize Acquisition Costs for Long-Duration Insurance Contracts

Feb 19, 2015
From the Financial Reporting View

This edition of Issues & Trends In Insurance reports that the FASB recently discussed three alternative approaches to amortizing deferred acquisition costs (DAC) for long-duration insurance contracts. The FASB decided to change to a consistent method to amortize DAC, resulting in amortization over the expected life of a book of contracts in proportion to the balance of insurance inforce.

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