AICPA Issues Working Drafts for Insurance Entities
March 18, 2020
The AICPA’s Financial Reporting Executive Committee has released for public comment working drafts that address the following two issues associated with insurance entities’ implementation of FASB Accounting Standards Update No. 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts:
- Deferred acquisition costs — considerations related to determining the expected term of the contract (Issue #9D).
- Whether an entity that has adopted ASU 2018-12 can change its accounting policy for all products for including the cost of reinsurance in loss recognition testing (Issue #11D).
Comments on the working drafts are due by May 15, 2020.