Financial Reporting

As part of a broader initiative to improve financial reporting for insurance accounting, FASB issued an invitation to comment on whether bifurcating insurance and reinsurance contracts into insurance and financing components would improve the transparency of financial reporting for insurance accounting ( ). Current standards give insurers and reinsurers limited guidance on accounting for insurance contracts, which often have both insurance and financing components that are combined and accounted for as insurance contracts. The board therefore is asking buyers and sellers of insurance contracts, users of their financial statements and, in particular, noninsurance-company policyholders, including small and private companies, whether and how insurance and reinsurance contracts should be bifurcated into insurance and deposit components. Comments are due August 24, 2006.


6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.


How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.