FASB invitation to comment on insurance accounting
03 Aug 2007
The US Financial Accounting Standards Board has issued an Invitation to Comment on Accounting for Insurance Contracts by Insurers and Policyholders.
The IASB is currently working on a project that addresses those issues. In May 2007, it issued a Discussion Paper (DP) Preliminary Views on Insurance Contracts, describing the main components of a proposed accounting model for insurance contracts. Although the scope of the IASB's project includes accounting by the policyholder, the IASB's DP does not include preliminary views on policyholder accounting and reporting issues. FASB invites comment on a range of issues, including:
- Whether it should undertake a project on accounting for insurance contracts.
- Whether it should do the project jointly with the IASB.
- Whether the IASB's preliminary views would be suitable starting point for a joint project.
- Whether the scope of the project should include accounting by policyholders.
- How the project should interact with other major FASB-IASB joint projects that address similar issues, for example, the conceptual framework and revenue recognition projects.
