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 firstname.lastname@example.org.