Insurance programs are subject of proposed federal accounting standards

By Ken Tysiac

New standards proposed by the Federal Accounting Standards Advisory Board (FASAB) are the result of an effort to provide concise, meaningful, and transparent information in federal government financial statements about insurance program costs and liabilities.

Three categories of insurance and related guidance would be established under the proposal:

  • Exchange transaction insurance programs other than life insurance;
  • Non-exchange transaction insurance programs; and
  • Life insurance programs.

The proposal would rescind existing standards for insurance and guarantee programs in paragraphs 97–121 of Statement of Federal Financial Accounting Standards No. 5, Accounting for Liabilities of the Federal Government.

“The board is seeking to improve federal financial reporting and to better inform readers about the operating performance of insurance programs and the risk of loss to the federal government from adverse events,” FASAB Chairman Tom Allen said in a news release.

FASAB is seeking comments on the exposure draft by March 29. Comments can be emailed to

Ken Tysiac ( is a JofA editorial director.


Year-end tax planning and what’s new for 2016

Practitioners need to consider several tax planning opportunities to review with their clients before the end of the year. This report offers strategies for individuals and businesses, as well as recent federal tax law changes affecting this year’s tax returns.


News quiz: Retirement planning, tax practice, and fraud risk

Recent reports focused on a survey that gauges the worries about retirement among CPA financial planners’ clients, a suit that affects tax practitioners, and a guide that offers advice on fraud risk. See how much you know with this short quiz.


Bolster your data defenses

As you weather the dog days of summer, it’s a good time to make sure your cybersecurity structure can stand up to the heat of external and internal threats. Here are six steps to help shore up your systems.