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CPA Group Guidance Covers New Insurance Accounting Standard

March 16, 2020, 4:01 PM

Insurance companies offering life, health, disability, and other long-term policies got draft guidance Monday from the American Institute of CPAs on how to consider two aspects of new accounting rules coming into effect for publicly traded companies in 2022.

The AICPA’s Financial Reporting Executive Committee’s proposal deals with the Financial Accounting Standards Board’s long-term insurance accounting overhaul, published in 2018.

  • The draft guidance covers two aspects of the accounting standard. The first deals with accounting for what’s called deferred acquisition costs—what an insurer pays to acquire new customers. The AICPA draft offers guidance on determining the expected term of ...