Heads Up — FASB issues exposure draft on insurance contracts
Volume 20, Issue 25
by Bryan Benjamin, Mark Bolton, Joe DiLeo, Allison Gomes, and Rick Sojkowski, Deloitte & Touche LLP
Summary
On June 27, 2013, the FASB released for public comment Proposed Accounting Standards Update, Insurance Contracts, as part of the FASB-IASB joint project to attempt to create a consistent approach for measuring insurance contracts. The IASB issued its second exposure draft, Insurance Contracts, on this topic on June 20, 2013. Comments on both proposals are due by October 25, 2013.
While the boards have made progress in bridging their differing views over the past two years of deliberations, the proposals are not fully converged. Unlike the IASB’s ED, which asks questions on only seven topics, the proposed ASU seeks constituents’ views on all aspects of the proposed accounting model for insurance contracts.
| Note: Although it seems likely that the new insurance contract standards will not be fully converged, the boards will continue to jointly redeliberate the project and are dedicated to achieving convergence whenever possible. |
The attached Heads Up discusses key elements of the FASB’s proposed ASU and contains several appendixes, including Appendix A, which compares the FASB’s proposal with current U.S. GAAP, and Appendix B, which compares the proposal with the IASB’s ED. For more information about the IASB’s ED, see Deloitte’s June 21, 2013, IFRS in Focus.
