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

ASU 2018-12

• 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

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