Handbook | March 2019
Long-duration contracts: Targeted improvements
KPMG examines ASU 2018-12, which changes how insurance entities recognize, measure, present and disclose long-duration contacts. Using Q&As, KPMG explains the key requirements in detail.
Applicability
- Insurance entities in the scope of US GAAP that issue long-duration contracts
- Not applicable to policyholders of long-duration contracts
- Not applicable to non-insurance entities
Relevant dates
| Effective date: | Public business entities | All other entities |
| Annual periods – Fiscal years beginning after |
December 15, 2020 | December 15, 2021 |
| Interim periods – In fiscal years beginning after | December 15, 2020 | December 15, 2022 |
| Early adoption allowed? | Yes | Yes |
Key impacts
- Overview of the accounting and reporting requirements
- Q&As that answer the questions we are encountering in practice
- Comparisons to legacy US GAAP
Report contents
- Liability for future policy benefits
- Market risk benefits
- Deferred acquisition costs
- Other accounting items
- Enhanced disclosure requirements
- Effective dates and transition
Related content
- KPMG reports on ASU 2018-12
- KPMG reports on the issuance of the proposed ASU
- KPMG reports on previous FASB redeliberations: November 2017, October 2017, August 2017, June 2018
Spotlight on contributors
Receive timely updates on accounting and financial reporting topics from KPMG.
Receive timely updates on accounting and financial reporting topics from KPMG.
Sign up now