FASB issued a proposed Accounting Standards Update that would grant all insurance companies that issue long-duration contracts, such as life insurance and annuities, additional time to apply the standard that addresses this area of financial reporting. Stakeholders are encouraged to review and provide comment on the proposal by September 20, 2019. As per the proposal, January 2022 (instead of January 2021) will be the new effective date for SEC filers other than smaller reporting companies while January 2024 (instead of January 2022) will be the new effective date for smaller reporting companies, other public business entities, and all the other entities (assuming the calendar-year-end reporting).
FASB, on August 15, 2018, had issued the Accounting Standards Update No. 2018-12 on targeted improvements to the accounting for long-duration contracts (Topic 944). The update made targeted amendments to improve, simplify, and enhance the financial reporting requirements for long-duration contracts issued by insurance companies. Since then, FASB has received a request to delay its effective date by one year. In response, FASB members and staff conducted outreach with numerous insurance companies that issue and/or reinsure long-duration contracts to better understand their implementation challenges and progress.
Furthermore, on August 15, 2019, FASB issued a proposed update that describes the new FASB philosophy for determining how effective dates for major standards are staggered between larger public companies and all other entities. Under this philosophy, a major standard would first be effective for larger public companies; effective dates for all other public and private companies and organizations would be staggered at least two years later. Therefore, based on the observations while monitoring implementation of the long-duration insurance standard and consistent with the new philosophy to stagger effective dates between large publicly traded companies and all other companies and organizations, FASB has proposed to grant all insurance companies at least one additional year to apply the standard. Generally, it is expected that early application would continue to be permitted for all entities.
- Press Release
- Proposed Update (PDF)
- Accounting Standards Update No. 2018-12 (PDF)
- New FASB philosophy
Comment Due Date: September 20, 2019
Effective Date: January 2022/January 2024
Keywords: Americas, US, Accounting, Insurance, Insurance Contracts, Topic 944, IFRS 17, Implementation Timeline, FASB
FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.
MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.
FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.