FASB Decides to Propose Update on Accounting for Insurance Contracts
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
Related Links
Keywords: Americas, US, Insurance, Accounting, Tentative Decisions, Insurance Contracts, Topic 944, IFRS 17, Implementation Timeline
Featured Experts
Gavin Conn
Experienced life actuary; background in economic capital modeling; ALM specialist; IFRS 17 researcher
David Fihrer
Skilled life insurance actuary; subject matter expert on IFRS 17 and source of earnings
Cassandra Hannibal
Life insurance actuary; risk management and economic capital specialist
Previous Article
FCA to Move Firms to RegData, the New Data Collection PlatformRelated Articles
EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation
The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
EBA Publishes Regulatory Standards to Identify Shadow Banking Entities
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
EC Publishes Results on Review of Web Accessibility Directive
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
NGFS Report Explores Quantification of Climate Risk Differentials
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
MAS Consults on Adjustment Spreads for Conversion of SOR Contracts
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
EBA Proposes Standards to Support Secondary NPL Markets
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
EBA Issues Standards for Crowdfunding Service Providers Under ECSPR
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
