United States

FASB Proposal Addresses Accounting for Long-Duration Contracts Issued by Insurance Companies

Oct 03, 2016
From the Financial Reporting Network

The FASB recently issued proposed ASU,Targeted Improvements to the Accounting for Long-Duration Contracts, as part of its efforts to improve the insurance accounting model. The proposal would apply to all insurance entities that issue long-duration contracts as defined in FASB ASC Topic 944, Financial Services—Insurance. It would not apply to (1) holders (that is, policyholders) of long-duration contracts or (2) noninsurance entities.

The comment period ends December 15, and the FASB plans to hold public roundtable meetings in the first quarter of 2017.

KPMG LLP will issue an Issues & Trends In Insurance about this ASU shortly.

Read Proposed FASB ASU