At its meeting on June 21-22, 2023, the AcSB provided feedback on a draft exposure draft that would provide guidance on accounting for insurance contracts with cash surrender value. The Board tentatively decided to provide guidance in an accounting guideline. The proposed guideline would: (i) require recognition of cash surrender value as an asset measured at the cash surrender amount; (ii) require recognition of the annual change in cash surrender amount and policy premiums on a net basis where a net debit is reported as expense and a net credit is reported as income; and (iii) establish disclosure requirements to ensure decision-useful information is provided. The AcSB gave permission to begin the balloting process. The Board plans to issue the exposure draft in October 2023 with a minimum 90-day comment period.

Review the Executive Summary on the AcSB's Web site.