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Proposed addition to the AICPA Audit and Accounting Guide: Life and Health Insurance Entities

The AICPA has proposed an addition to the Life and Health Insurance Entities Audit and Accounting Guide to address whether to apply the retrospective transition guidance for market risk benefits in ASU 2018-12, Financial Services – Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts before or after the modified retrospective transition guidance for the liability for future policy benefits, deferred acquisition costs, and balances amortized on a basis consistent with deferred acquisition costs. Comments should be received by November 17, 2021.

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