Dec 19, 2016
From the Financial Reporting View
KPMG LLP recently commented on the proposed FASB ASU, Targeted Improvements to the Accounting for Long-Duration Contracts, which would change how insurance entities recognize, measure, present, and disclose long-duration insurance contracts.
The firm supports the Board’s objective to make targeted improvements to the recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. The firm suggested that the Board modify or perform additional analysis and outreach on certain aspects of the proposal. Those aspects include the method for updating cash flow assumptions, the discount rate for non-participating contracts, the accounting model for participating contracts, and the scope and transition method for market risk benefits.