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
- September 29, 2016 – FASB issued exposure draft
- December 15, 2016 – Comment deadline.
- 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
- Liability for future policy benefits
- Market-risk benefits
- Deferred acquisition costs
- Transition requirements