The American Institute of CPAs’ Financial Reporting Executive Committee has proposed operating drafts of accounting issues for insurance entities to offer them steerage on implementing the Financial Accounting Standards Board’s new standards for long-duration coverage contracts and credit losses.
FASB’s new coverage accounting wellknown amends the existing recognition, measurement, presentation and disclosure requirements for long-term contracts, inclusive of for life coverage, annuities, endowments and title insurance. The Financial Reporting Executive Committee, also known as FinREC, and the AICPA Insurance Expert Panel have been developing operating drafts on accounting implementation issues which have been diagnosed for FASB’s new coverage fashionable, as FinREC also does for other enterprise sectors and accounting requirements.
“The AICPA is dedicated to helping insurers with the implementation of both the Long-Duration Targeted Improvements and Credit Loss standards,” said Kim Kushmerick, the AICPA’s accomplice director of accounting requirements, in a statement. “This is an intensive attempt for the many volunteers worried with developing accounting issues that help insurers apply the new ideas in both requirements.”
The running draft for implementation of the coverage standard can be determined right here.
Another new FASB preferred is for credit score losses, also called CECL for the Current Expected Credit Loss version it follows. The new popular guarantees to change how many companies, including financial institutions, account for their expected credit score losses from impaired loans.
The CECL running drafts for implementation of the new accounting popular for coverage entities may be found here and right here. The AICPA is searching out feedback from preparers at the draft steerage; comments need to be emailed to [email protected] via Feb. 10, 2020. The finalized steering can be covered in a brand new AICPA Audit and Accounting Guide: Credit Losses, in conjunction with Audit and Accounting Guides for Life and Health Insurance Entities and Property and Liability Insurance Entities.
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