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11400 Targeted Improvements to the Accounting for Long-Duration Contracts for Insurance Entities (FASB ASC Topic 944)
us SEC - Financial Reporting Manual
(Last updated: 12/31/2022)
On August 15, 2018, the FASB issued ASU No. 2018-12, Financial Services — Insurance (Topic 944): Targeted Improvements to the Accounting for Long- Duration Contracts. The ASU applies to insurance entities that issue long- duration contracts as defined in Topic 944, Financial Services – Insurance.
Public business entities that meet the definition of a Securities and Exchange Commission (SEC) filer, excluding entities eligible to be smaller reporting companies, must apply the ASU to fiscal years beginning after December 15, 2022 and interim periods within those fiscal years. The one-time determination of whether an entity is eligible to be a smaller reporting company is based on an entity’s most recent determination as of November 15, 2019.
All other entities, including smaller reporting companies and EGCs that have elected to defer compliance with new or revised financial accounting standards until a company that is not an issuer (as defined under Section 2(a) of the Sarbanes-Oxley Act of 2002), are required to apply the ASU to fiscal years beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025.
Early application of the amendments is permitted. If early application is elected, the transition date shall be either the beginning of the prior period presented or the beginning of the earliest period presented. If early application is not elected, the transition date shall be the beginning of the earliest period presented.
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