Featured Product

    FASB Decides to Delay Implementation of LDTI Standard for Insurers

    September 30, 2020

    At the September 2020 meeting, the FASB Board discussed the feedback received on the proposed Accounting Standards Update No. 2018-12 with respect to the effective date and early adoption of the targeted improvements to the accounting for long-duration insurance contracts (LDTI or Topic 944). FASB decided to defer the effective date of the amendments in Accounting Standards Update No. 2018-12 for all insurance entities by one year. FASB also decided to amend the proposed early application provisions of Update 2018-12 whereby the early application transition date would be either the beginning of the prior period or the earliest period presented. As a next step, the Board has directed the staff to draft an Accounting Standards Update for vote by written ballot.

    As per the proposal published on July 09, 2020, the Accounting Standards Update would permit insurance companies to delay implementation by one year as follows:

    • For SEC filers, excluding smaller reporting companies as defined by the SEC, LDTI would be effective for fiscal years beginning after December 15, 2022 and for interim periods within those fiscal years.
    • For all other entities, LDTI would be effective for fiscal years beginning after December 15, 2024 and for interim periods within fiscal years beginning after December 15, 2025.

    FASB received 28 comment letters during the consultation period, which ended on August 24, 2020. All 28 respondents supported the proposed amendments to defer the effective date of the amendments in Update 2018-12 for all entities by one year. Respondents generally noted that the deferral would enable preparers to ensure a quality implementation of the amendments in Update 2018-12, work around delays caused by COVID-19 pandemic, and educate management and external users on the effects of adopting the new amendments. The 25 respondents that provided a view about the amendment in the proposed update on early application supported the proposed amendment to change the early application transition date guidance. Those respondents noted that it would achieve a more consistent transition date for all entities and encourage accelerated delivery of information to financial statement users for those entities in a position to early adopt. One respondent (that did not provide a view on the proposed amendments on early application) noted there may be unintended consequences of the early application transition date change proposed by the Board. One respondent also suggested that the Board consider shortening the period between the required smaller reporting company determination date (November 15, 2019) and the proposed effective date for the amendments in Update 2018-12, citing that an entity may change its designation before the effective date of the amendments in Update 2018-12 and still benefit from having a later effective date.

     

    Related Links

    Keywords: Americas, US, Insurance, Accounting, Topic 944, LDTI, Insurance Contracts, Implementation Timeline, COVID-19, FASB

    Featured Experts
    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    News

    FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy

    The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.

    November 03, 2022 WebPage Regulatory News
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8588