The Financial Accounting Standards Board is proposing another accounting delay, this time focusing on the effective date of a new standard that will change the way companies recognize insurance obligations in financial statements.
FASB adopted Accounting Standards Update No. 2018-12 in August 2018 to make “targeted improvements” in the accounting for long-duration insurance contracts. The standard alters the recognition of liabilities for future policy benefits and modifies the rate used to discount future cash flows. It also simplifies and improves the accounting for certain market-based options or guarantees tied to deposit or account balance contracts, simplifies the amortization of deferred acquisition costs, and improves disclosures.
