FASB published the tentative decisions taken at its Board meeting in June 2020. Among other issues, FASB discussed agenda requests regarding the effective date of Accounting Standards Update No. 2018-12 on the targeted improvements to accounting for long-duration insurance contracts (Topic 944). FASB voted to issue a proposed Accounting Standard Update that would grant insurance companies that issue long-duration contracts an additional year to implement the Accounting Standards Update No. 2018-12. Stakeholders will have 45 days to review and provide comment on the proposed Accounting Standard Update, which FASB expects to issue in the coming weeks. FASB directed the staff to draft a proposed Update for vote by written ballot.
At the June meeting, FASB also decided against adding a project to the technical agenda to introduce an alternative effective date of the amendments in Update 2018-12 for certain reinsurance arrangements. Additional decisions were to
- Add a project to the technical agenda to amend the effective date of the amendments in Update 2018-12
- Propose a one-year deferral of the effective date of the amendments in Update 2018-12 for all insurance entities
- Propose a change to the early application provisions of Update 2018-12, whereby the early application transition date would be the beginning of the prior period
Keywords: Americas, US, Insurance, Accounting, Tentative Decisions, Insurance Contracts, Topic 944, IFRS 17, Implementation Timeline
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.