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

    BIS and Central Banks Experiment with GenAI to Assess Climate Risks

    A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe

    March 20, 2024 WebPage Regulatory News
    News

    Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures

    Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.

    March 18, 2024 WebPage Regulatory News
    News

    Singapore to Mandate Climate Disclosures from FY2025

    Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies

    March 18, 2024 WebPage Regulatory News
    News

    SEC Finalizes Climate-Related Disclosures Rule

    The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.

    March 07, 2024 WebPage Regulatory News
    News

    EBA Proposes Standards Related to Standardized Credit Risk Approach

    The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU

    March 05, 2024 WebPage Regulatory News
    News

    US Regulators Release Stress Test Scenarios for Banks

    The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).

    February 28, 2024 WebPage Regulatory News
    News

    Asian Governments Aim for Interoperability in AI Governance Frameworks

    The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.

    February 28, 2024 WebPage Regulatory News
    News

    EBA Proposes Operational Risk Standards Under Final Basel III Package

    The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.

    February 26, 2024 WebPage Regulatory News
    News

    EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS

    The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.

    February 23, 2024 WebPage Regulatory News
    News

    ECB to Expand Climate Change Work in 2024-2025

    Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.

    February 23, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8957