FASB Issues Proposal to Delay Implementation of Long-Duration Insurance Standard and Facilitate Early Adoption
FASB Issues Proposal to Delay Implementation of Long-Duration Insurance
Standard and Facilitate Early Adoption
July 9, 2020
In response to the COVID-19 pandemic, the FASB has issued a proposed Accounting Standards Update (ASU), Financial
Services — Insurance (Topic 944): Effective Date and Early Application, that
would grant insurance companies an additional year to implement ASU 2018-12,
Targeted Improvements to the Accounting for Long-Duration Contracts.
The proposal would also make early adoption easier by providing transition relief to
insurers that do not need the extra time. Under the proposed ASU, “[T]he early
application transition date would be the beginning of the prior period presented
(rather than the beginning of the earliest period presented), thereby aligning the
early application transition date with the standard transition date for SEC
Comments on the proposed ASU are due by August 24, 2020. For more information, see
the press release on the FASB’s Web site.
On July 24, 2020, the FASB issued for comment Proposed
Taxonomy Improvements on Proposed Accounting Standards
Update, Financial Services—Insurance (Topic 944):
Effective Date and Early Application. Comments on
the proposed taxonomy improvements are due
by August 24, 2020.