Note: Since issuing the new revenue standard in May 2014, the FASB and IASB have proposed various amendments to the guidance. This In depth has not been updated to reflect all of the proposed changes. See In transition US2015-08, The new revenue standard — changes on the horizon, for a summary of the changes, their impact, and the areas where the FASB and IASB have taken different approaches.
In May 2014, the FASB and IASB issued their long-awaited converged standard on revenue recognition. Insurance intermediaries will be most affected by the new requirements on identifying separate performance obligations and variable consideration, such as contingent commissions and renewal commissions. Insurance intermediaries will need to consider changes that might be necessary to information technology systems, processes, and internal controls to capture new data and address changes in financial reporting.
This industry-specific supplement to our In depth publication highlights some of the areas that could create the most significant challenges for U.S. GAAP reporters in the insurance intermediary industry as they transition to the new standard.
For a comprehensive analysis of the new standard, read In depth: Revenue standard is final – A comprehensive look at the new model.
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