Dataline: Accounting for costs associated with acquiring or renewing insurance contracts -- Questions and interpretive responses on implementing ASU 2010-26 (No. 2011-01)

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In October 2010, the FASB released ASU 2010-26, Financial Services—Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.. The ASU represents a final consensus of the Emerging Issues Task Force on Issue 09-G.ASU 2010-26 will likely change how insurance companies account for acquisition costs, particularly in determining what costs are deferrable. The new requirements are effective for fiscal years beginning after December 15, 2011, either prospectively or by retrospective adjustment. Earlier application is permitted as of the beginning of a company's annual reporting period (e.g., in 2011 for calendar year companies). This Dataline highlights certain frequently asked questions about the implementation of ASU 2010-26, along with PwC's interpretive responses.