Defining Issues | November 2017


FASB makes presentation and disclosure decisions for long-duration insurance contracts

KPMG reports on the FASB’s decisions about the presentation and revised disclosures for long-duration insurance contracts. These decisions include changes to the frequency and transition requirements.


Proposed ASU on ASC 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
  • November 1, 2017 – FASB continues deliberations on exposure draft

Key impacts

The FASB decided to:

  • Affirm the separate presentation of market risk benefits in the statement of financial position and statement of operations, except for changes in instrument-specific credit risk
  • Require separate presentation of the liability remeasurement gain or loss for future policy benefits in the statement of operations
  • Add disclosures for gross premiums, techniques used to determine unobservable rates and premium deficiency testing methodologies and results
  • Remove disclosures for information about managing risks, certain weighted-average inputs or assumptions, and information used to conclude that no additional liability should be recognized for universal life-type contracts
  • Reduce the frequency of certain disclosure requirements
  • Replace the proposed transition disclosure requirements

Report contents

  • Applicability
  • Key facts and impacts
  • Presentation
  • Disclosures
  • Next steps

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