FASB issues new ASU on insurance contracts
14 Oct 2010
The FASB has released Accounting Standards Update (ASU) No. 2010-26 – Financial Services – Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.
The ASU clarifies which costs incurred in the acquisition of new and renewal contracts should be capitalized. Within IFRSs, there is no guidance prohibiting or requiring the deferral of acquisition costs.
The ASU results from the September meeting of FASB's Emerging Issues Task Force. More information about the decisions reached at the EITF meeting can be found in the EITF Snapshot (PDF 129k).
The IASB and U.S. FASB are also currently working on a project on Insurance Contracts. A final IFRS is expected in the second quarter 2011.
