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2016

February 26, 2016 — Insurance Project — FASB Tentatively Decides on Presentation and Disclosure Requirements for Long-Duration Insurance Contracts

Insurance Project —FASB Tentatively Decides on Presentation and Disclosure Requirements for Long-Duration Insurance Contracts

Accounting Journal Entry
February 26, 2016 — At its meeting this week, the FASB tentatively decided to require insurers to separately present (1) the carrying amount of the liability for market risk benefits in the statement of financial position and (2) changes in the fair value of that liability (excluding changes in an entity’s own credit risk) in the statement of operations. In a series of unanimous votes, the FASB also tentatively approved proposed disclosure requirements related to (1) liability for future policy benefits, (2) liability for policyholders’ account balances, (3) market risk benefits and separate account liabilities, and (4) deferred acquisition costs. The disclosure requirements detailed in the meeting handout and tentatively approved by the Board are reproduced in the appendix below.

Footnotes