Oct 30, 2015
From the Financial Reporting View
This edition of Issues & Trends In Insurance reports that the FASB recently decided how insurers would calculate the liability for future policyholder benefits for participating life insurance contracts, including how to record updated assumptions. The Board decided to include expected dividend payments in the required assumptions used to measure the liability, and to use a high-quality, fixed-income instrument yield as the discount rate. Updated assumptions would be recorded in the same manner as traditional long-duration insurance contracts.