|Whether you are a financial statement preparer or an auditor, it is critical to understand the complexities of the life and health insurance industry including revenue recognition, investments, deferred acquisition costs, and financial statement presentation. AICPA publications provide information on recent developments, guidance, practice aids, and illustrative examples for the common accounting and audit practices in the life and health insurance industry including
- accounting for investments in debt and equity securities, mortgage loans, real estate, joint ventures, and other investments accounting for benefit and claim payments.
- accounting for future policy benefits (statutory policy reserves) and other contract liabilities.
- accounting for benefit and claim payments.
- auditing in-force files and commissions, general expenses, and deferred acquisition costs.
Find comprehensive examples of
- comparison of tax return accounting rules and statutory accounting practices.
- financial statements, notes, and supplementary schedules.
- how to determine deferrable acquisition costs.
Due to the clarification in the definition of the types of acquisition costs that can be capitalized, as provided by ASU No. 2010-26, Financial Services—Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts, the accounting content of chapter 10, "Commissions, General Expenses, and Deferred Acquisition Costs," of the 2012 edition of the Audit and Accounting Guide has been revised to incorporate the new guidance and also to include two illustrative examples of how to determine deferrable acquisition costs.
For more information on the industry and the AICPA's commitment to provide updates and guidance, visit the Insurance Entities Expert Panel's webpage.