Issues & Trends | October 2016

Proposed ASU: Long-duration contracts improvements

KPMG reports on proposed amendments to ASC 944. The FASB proposes targeted improvements to recognition, measurement, presentation and disclosures for long-duration contracts issued by insurance companies.


Proposed ASU on ASC Topic 944

  • Insurance entities that issue long-duration contracts
  • Not applicable to policyholders of long-duration contracts
  • Not applicable to non-insurance entities

Relevant dates

  • September 29, 2016 – FASB issued exposure draft
  • December 15, 2016 – Comment deadline.

Key impacts

  • The proposed changes will significantly affect the financial statements of insurance entities
  • Insurance entities should consider what effective date would be practical and communicate their concerns about transition, including the cost and complexity of adopting the proposed ASU
  • FASB’s public roundtable will be held at the first quarter of 2017

Report contents

  • Liability for future policy benefits
  • Market-risk benefits
  • Deferred acquisition costs
  • Disclosures
  • Transition requirements



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