Accounting Group May Put Off Life Insurers’ Benefits Value Rollercoaster Rides
August 27, 2019 by Allison Bell
The Financial Accounting Standards Board (FASB) today said it wants to give U.S. insurers more time before they have to get on a new financial reporting rollercoaster.
FASB has proposed postponing the dates when insurers will have to begin complying with a new set of FASB rules that affect accounting for “long-duration insurance contracts,” such as contracts for life insurance, long-term disability insurance, annuities and long-term care insurance.
- For the biggest publicly traded insurers, the effective date could move back to January 2022, from January 2021, FASB says.
- For smaller publicly traded companies, the effective date could move to January 2024, from January 2021.
- For any other entities subject to the rules, the effective date could move to January 2024, from January 2022.
FASB Chairman Russell Golden said in a statement that the accounting standards group came up with the delay proposal after watching insurers trying to meet the original deadlines.
“We believe it will result in a higher-quality implementation for all,” Golden said in the statement.