AICPA Issues Working Drafts for Insurance Entities

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 (ASU) No. 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts:

• Ceded reinsurance — what is the liability for future policy benefits to be used to reinsure existing traditional life insurance contracts? (Issue #11B).
• Impact of ASU 2018-12 on shadow accounting (Issue #13).

Comments on the working drafts are due by July 17, 2020.