Recognition & measurement transition implications for insurance entities
Sep 21, 2017
We summarize transition guidance for insurance entities with equity investments without readily determinable fair values.
Overview
ASU 2016-01 specifies that the guidance on equity investments without readily determinable fair values should be applied prospectively when the measurement alternative is elected. The adoption date AOCI associated with these investments is not released to retained earnings upon adoption. Insurance entities should adopt an appropriate methodology for the subsequent accounting for this AOCI that is logical and consistently applied to all securities accounted for using the measurement alternative.
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