Add to favorites
ASC 944-30, Acquisition Costs, establishes requirements for the accounting for and financial reporting of acquisition costs. This includes related considerations for internal replacement transactions (i.e., when a product benefit or feature is modified) and reinsurance.
The types of costs that are deferrable are consistent among the various insurance models (i.e., short-duration, long-duration, financial guarantee and title insurance). See IG 2 for a description of the various models. In addition, although investment contracts issued by insurance entities lack insurance risk, the types of costs related to these contracts that are deferrable follows the DAC guidance. Although the types of costs that are deferrable is uniform among the various types of insurance and investment contracts, the method of amortization varies depending on the specific insurance model classification, as further described in IG 3.5.

3.2.1 Acquisition costs for contracts accounted for at fair value

Certain contracts issued by insurance entities may be subject to the provisions of ASC 815, Derivatives and Hedging. These contracts are measured at fair value; thus, DAC would not be established in conjunction with these contracts. Similarly, acquisition costs for insurance contracts that have been elected to be measured at fair value under the fair value option would also not be deferred and instead would be recognized as an expense in the period incurred.

Welcome to Viewpoint, the new platform that replaces Inform. Once you have viewed this piece of content, to ensure you can access the content most relevant to you, please confirm your territory.

signin option menu option suggested option contentmouse option displaycontent option contentpage option relatedlink option prevandafter option trending option searchicon option search option feedback option end slide