Summary of Statement No. 120
Accounting and Reporting by Mutual Life Insurance Enterprises and by Insurance Enterprises for Certain Long-Duration Participating Contracts--an amendment of FASB Statements No. 60, 97, and 113 and Interpretation No. 40 (Issued 1/95)
Summary
This Statement extends the requirements of FASB Statements No. 60,
Accounting and Reporting by Insurance Enterprises, No. 97,
Accounting and Reporting by Insurance Enterprises for Certain
Long-Duration Contracts and for Realized Gains and Losses from the
Sale of Investments, and No. 113, Accounting and Reporting
for Reinsurance of Short-Duration and Long-Duration Contracts,
to mutual life insurance enterprises, assessment enterprises, and
fraternal benefit societies (all of which are hereafter referred to
as mutual life insurance enterprises). The AICPA has established
accounting for certain participating life insurance contracts of
mutual life insurance enterprises in its Statement of Position
95-1, Accounting for Certain Insurance Activities of Mutual Life
Insurance Enterprises, that should be applied to those
contracts that meet the conditions in this Statement. This
Statement also permits stock life insurance enterprises to apply
the provisions of the SOP to participating life insurance contracts
that meet the conditions in this Statement. This Statement is
effective for financial statements issued for fiscal years
beginning after December 15, 1995.
This Statement also amends FASB Interpretation No.
40, Applicability of Generally Accepted Accounting Principles to
Mutual Life Insurance and Other Enterprises, to defer the
effective date of the general provisions of that Interpretation to
fiscal years beginning after December 15, 1995. This Statement does
not change the disclosure and other transition provisions of
Interpretation 40.