AICPA’s Financial Reporting Executive Committee Seeks Feedback on Insurance Entities Working Drafts: Targeted Improvements to Long-Duration Contracts

January 21, 2020

NEW YORK, NY (January 21, 2020) - The American Institute of CPA’s (AICPA) Financial Reporting Executive Committee (FinREC) has issued several working drafts of accounting issues for Insurance Entities, related to the implementation of FASB Accounting Standards Update (ASU) No. 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts, and is requesting feedback.

The new FASB accounting standard on Long-Duration Contracts makes targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance company. FinREC and the AICPA Insurance Expert Panel will continue to develop working drafts on accounting implementation issues that have been identified for the new standard.

The working drafts for implementation of ASU 2018-12 are available at:

Final issues for the project will be included in the Audit and Accounting Guide: Life and Health Insurance Entities.

The AICPA is seeking feedback from preparers of financial statements, practitioners, and other interested parties. Please submit informal feedback to Kim.Kushmerick@aicpa-cima.com by April 10, 2020.

About the Financial Reporting Executive Committee

The Financial Reporting Executive Committee (FinREC) is the senior committee of the Institute for financial reporting. It is authorized to make public statements on behalf of the Institute on financial reporting matters without the clearance of either the Council or the board of directors of the Institute and to clear statements of other committees that include references to financial reporting positions. The mission of FinREC is to determine the Institute's technical policies regarding financial reporting standards and to be the Institute's spokesbody on those matters, with the ultimate purpose of serving the public interest by improving financial reporting.