Last updated on July 1, 2014. Please refer to the Current Technical Plan for information about the expected release dates of exposure documents and final standards.
(Updated sections are indicated with an asterisk *)
This project update summarizes the project activities and decisions of the FASB (the Board). It was prepared by the staff and is for the information and convenience of the Board’s constituents. All decisions of the Board are tentative, may change at future Board meetings, and do not change current accounting and reporting requirements. Decisions of the Board become final only after extensive due process.
*PROJECT OBJECTIVEThe objective of the project is to develop targeted improvements to insurance accounting. Those improvements may address recognition, measurement, presentation, and disclosure requirements for long-duration insurance contracts (including reinsurance). For short-duration contracts, improvements would center on enhanced disclosures.
For specific details about targeted improvements to disclosures about short-duration contracts or the accounting for long-duration contracts, please refer to the pages for each of those topics at the links below:
Disclosures about Short-Duration Contracts
Targeted Improvements to the Accounting for Long-Duration Contracts
The Board will deliberate potential targeted improvements to accounting for long-duration contracts and disclosures for short-duration contracts. The Board also directed the staff to perform outreach about potential reinsurance issues.
DUE PROCESS DOCUMENTS
The FASB issued a proposed Accounting Standards Update, Insurance Contracts (Topic 834) on June 27, 2013. The comment period ended on October 25, 2013.Details of the Board’s deliberations with the IASB and feedback received on the 2013 proposed Update can be found on the page, Insurance Contracts—Joint Project of the FASB and IASB.
Please refer to the Disclosures about Short-Duration Contracts and Targeted Improvements to the Accounting for Long-Duration Contracts pages for current Board meeting minutes related to each of those topics within the broader Insurance project.
BOARD/OTHER PUBLIC MEETING DATES
The Board meeting minutes are provided for the information and convenience of constituents who want to follow the Board’s deliberations. All of the conclusions reported are tentative and may be changed at future Board meetings. Decisions become final only after a formal written ballot to issue a final standard.
|April 16, 2014||Board Meeting—Scope and project direction|
|February 19, 2014||Board Meeting—Scope and project direction|
BACKGROUND INFORMATIONIn August 2007, the Board issued an Invitation to Comment, An FASB Proposal: Accounting for Insurance Contracts by Insurers and Policyholders, which included the IASB’s May 2007 Discussion Paper, Preliminary Views on Insurance Contracts. The Boards’ objective in undertaking the proposed project was to develop a common, high-quality standard that addresses recognition, measurement, presentation, and disclosure requirements for insurance contracts. The Board received 45 comment letters in response to the Invitation to Comment, which led to its decision in October 2008 to participate in the project jointly with the IASB. The Boards held more than 50 meetings to discuss various proposals to develop a common standard for insurance contracts. While the Boards reached common decisions in many areas, they reached different conclusions in others. On June 27, 2013, the Board issued a proposed Accounting Standards Update, Insurance Contracts (Topic 834). Details of the Board’s deliberations with the IASB and feedback received on the 2013 proposed Update can be found on the page, Insurance Contracts—Joint Project of the FASB and IASB.
In light of the feedback received on the 2013 proposed Update, the Board decided to limit the scope to insurance entities as described in existing U.S. GAAP. The Board also decided that the project should focus on making targeted improvements to existing U.S. GAAP. For short-duration contracts, the Board decided to limit the targeted improvements to enhancing disclosures.
For long-duration contracts, the Board concluded that decisions reached by the IASB in its 2013 IASB Exposure Draft, Insurance Contracts, should be considered when contemplating improvements to existing U.S. GAAP.
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