FASB changes accounting for long-duration insurance contracts
By Ken Tysiac
Financial reporting for insurance companies that issue long-duration contracts will change under an accounting standard issued Wednesday by FASB.
The targeted changes to the current reporting model affect accounting for companies that sell long-duration products such as life insurance, disability income insurance, long-term-care insurance, and annuities.
FASB issued the changes in Accounting Standards Update No. 2018-12, Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. The new standard: