Handbooks | April 2021

 

Insight

Handbook: Long-duration contracts

Latest edition: Our updated guide for long-duration contracts, with Q&As, interpretive guidance and examples.

Jennifer Austin

Jennifer Austin

Partner, Dept. of Professional Practice, KPMG US

1 212-872-2946

Darcie Garza

Darcie Garza

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-1408


In-depth guidance on, and interpretations of, ASU 2018-12. This latest edition includes new and updated interpretations and examples based on our experience with companies implementing ASU 2018-12.

Applicability

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

Relevant dates

Effective date SEC filers, except smaller reporting companies All other entities

Annual periods – Fiscal years beginning after       

December 15, 2022

December 15, 2024

Interim periods – In fiscal years beginning after 

December 15, 2022

December 15, 2025

Early adoption allowed?

Yes. If early adoption is elected, the transition date is either the beginning of the prior period presented or the beginning of the earliest period presented.

 

Key impacts

  • Q&As that answer common questions we are encountering in practice
  • Examples to explain key concepts
  • Changes from 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

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