The Board was presented an Agenda Paper dealing with accounting for policyholders' rights under insurance contracts. The staff explained that no specific standard or guidance exists for policyholder accounting. It was noted that in the past this was not considered to be a significant issue and for that reason no guidance was developed. The staff noted that the need for accounting guidance has grown over the last years and that US GAAP already includes some guidance in that area.

The Board discussed the issue of symmetry in accounting and if policyholder accounting should remain part of the Insurance Contracts project (as it is already within the agreed scope).

The Board agreed that policyholder accounting should remain part of the Insurance Contracts project and that there should be more focus on these issues. Also the Board tentatively agreed that no Discussion Paper would be required and any output would result directly in an Exposure Draft. It was not decided if it will be an amendment to existing standards or a stand-alone standard.