Today, the FASB released for public comment a proposed ASU, Insurance Contracts, which is the latest step in the FASB’s efforts to improve insurance contract accounting. The insurance project is a joint project between the FASB and IASB aimed at creating a consistent approach for measuring insurance contracts. The IASB issued its own exposure draft (ED) on insurance contracts on June 20, 2013.¹

While the boards have made progress in bridging their differing views over the past two years of deliberations, the proposals are distinct documents and the boards’ proposed accounting models are not fully converged. Unlike the IASB’s ED, the proposed ASU seeks constituents’ views on all aspects of the proposed accounting model for insurance contracts.

Comments on the proposed ASU are due by October 25, 2013.

We expect to issue a comprehensive Heads Up soon, which will include an overview of the FASB’s proposed ASU and a comparison of the proposed accounting model with current U.S. GAAP and with the IASB’s ED.