Long-duration insurance contracts — FASB approves drafting of a proposed ASU
At its meeting on August 31, the FASB concluded that (1) it had gained a sufficient understanding of the issues associated with the proposed amendments to the long-duration insurance contracts accounting and disclosure model to make an informed decision about those proposals and (2) the benefits of the proposed amendments will outweigh the related implementation costs. Accordingly, the Board directed its staff to draft a proposed Accounting Standards Update (ASU) for vote by written ballot.
Next Steps
The FASB will provide a 75-day comment period for the proposed ASU, which is expected to be released in late September or early October 2016. After the end of the comment period, the Board will hold a public roundtable, tentatively scheduled for March 2017.
