FASB Discusses Project on Deferral of Effective Date and Amendments to Early Application of ASU 2018-12

At its September 30, 2020, meeting, the FASB discussed its project on the deferral of the effective date and amendments to the early application provisions in Accounting Standards Update (ASU) 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts. The Board (1) reaffirmed its decision to defer the effective date of ASU 2018-12 for all insurance entities by one year and (2) amended the “proposed early application provisions in [ASU] 2018-12 whereby the early application transition date would be either the beginning of the prior period or the earliest period presented.” In addition, the Board directed its staff to draft a final ASU for a vote by written ballot