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Accounting for insurance contracts

Feature - 3 items

FASB affirms deferral of long-duration standard

Read about the FASB’s decision

Accounting for long-duration contracts of insurers

Read our updated In depth on the new long-duration insurance guidance

Long Duration Targeted Improvement Survey 2019

Explore the results of our recent survey on LDTI implementation

Insurers are likely to face major changes as they implement FASB’s new standard on long-duration insurance contracts issued in August 2018. The new standard, ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts, is effective for calendar year-end public business entities (PBEs) on January 1, 2021; all other entities have an additional year. Early adoption is permitted.

The IASB issued its final comprehensive standard on insurance contracts in May 2017.

Latest issue

Quick update on what is changing

For long-duration contracts (principally life and annuity contracts), major changes are imminent due to the release of FASB's final standard, ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts.