How To Develop Your Skill For Great Success And Happiness Including Become CPA? | Additional special tips From Admin
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FASB changes insurance accounting
Financial reporting for insurance companies that issue long–duration contracts will change under an accounting standard issued 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:
The standard will take effect in 2021 for public business entities for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2020. For all other entities, the standard will take effect for fiscal years beginning after Dec. 15, 2021, and interim periods within fiscal years beginning after Dec. 15, 2022.
Early adoption will be permitted.
FASB’s work to improve accounting for insurance contracts began 10 years ago as a comprehensive convergence project with the International Accounting Standards Board (IASB). FASB later split with the IASB on the project and initially proposed a comprehensive new standard that would have introduced new accounting models.
After outreach to constituents, FASB decided that a more targeted approach was needed for insurance contract accounting.
Research & References of FASB changes insurance accounting|A&C Accounting And Tax Services
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A note for you if you pursue CPA licence, KEEP PRACTICE with the MANY WONDER HELPS I showed you. Make sure to check your works after solving simulations. If a Cashflow statement or your consolidation statement is balanced, you know you pass right after sitting for the exams. I hope my information are great and helpful. Implement them. They worked for me. Hey.... turn gray hair to black also guys. Do not forget HEALTH?
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