FASAB tackles insurance program reporting

Proposed federal accounting standards are aimed at transparency.

New standards proposed by the Federal Accounting Standards Advisory Board (FASAB) would change reporting about insurance program costs and liabilities in federal government financial statements.

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 changes are meant to better convey operating performance and risk of loss, 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 fasab@fasab.gov.

SPONSORED REPORT

Why cybercriminals are targeting CPAs

This free report expands on the most commonly found scams, why education and specialized IT knowledge help to lessen security vulnerabilities, and why every firm should plan carefully for how it would respond to a breach.

PODCAST

How tax reform — and Excel — are changing the CPA Exam

Mike Decker, the vice president of examinations at the AICPA, discusses changes being made to the exam as a result of tax reform — and about how Excel will now be available for use on the test.