Accounting
AICPAs Seeks Feedback on Insurance Entities Working Drafts
The FASB accounting standard on Long-Duration Contracts makes targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance company. FinREC and the AICPA ...
May. 27, 2021
The American Institute of CPA’s (AICPA) Financial Reporting Executive Committee (FinREC) has issued four working drafts of accounting papers for Insurance Entities and is requesting feedback. The drafts are related to the implementation of FASB Accounting Standards Update (ASU) No. 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts.
The FASB accounting standard on Long-Duration Contracts makes targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance company. FinREC and the AICPA Insurance Expert Panel will continue to develop working drafts on accounting implementation issues that have been identified for the new standard.
The working drafts for implementation of FASB ASU 2018-12 are available at:
- Issue #3: Market Risk Benefits – Scope
- Issue #4D: Market risk benefits – Retrospective adoption of market risk benefits guidance and the effect on purchase accounting
- Issue #6: Use of Discount Rates or Yield Curve for interest accretion on Insurance Liabilities under ASU 2018-12
- Issue #16: Level of Aggregation for the Measurement of the Liability for Future Policy Benefits
Final issues for the project will be included in the Audit and Accounting Guide: Life and Health Insurance Entities.
The AICPA is seeking feedback from preparers of financial statements, practitioners, and other interested parties. Please submit informal feedback to Kim.Kushmerick@aicpa-cima.com by July 29, 2021.