Accounting Standard Updates

AICPA Seeking Feedback on Insurance Standard Guidance

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Hot Take:

Hot Take

The long-duration contract standard (ASU 2018-02) is a deep actuarial exercise in its application, much more than an accounting implementation. The results do, however, impact the financial reporting of reserve liabilities and other related items.

Each of the four items linked below is proposed explanatory language additions to the Audit and Accounting Guide: Life and Health Insurance Entities.  

The AICPA is seeking comments via email by April 10, 2020.

 

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After many delays in the implementation dates for the long-duration insurance accounting standard, now slated for January 2024, the AICPA has drafted guidance and is seeking feedback from preparers of financial statements, practitioners, and other interested parties by April 10, 2020.

The new accounting standard makes targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements issued by an insurance company. The drafts linked below are the proposed explanatory language additions to the Audit and Accounting Guide: Life and Health Insurance Entities:

Where to send your feedback on the working drafts above? Comments should be emailed to Kim.Kushmerick@aicpa-cima.com by April 10, 2020.