FASAB issues new standard on insurance programs

Guidance rescinds existing rules.

The Federal Accounting Standards Advisory Board (FASAB) issued Statement of Federal Financial Accounting Standards (SFFAS) No. 51, Insurance Programs, establishing three categories of insurance and related guidance:

  • Exchange transaction insurance programs other than life insurance.
  • Nonexchange transaction insurance programs.
  • Life insurance programs.

The new guidance rescinds existing standards for insurance and guarantee programs in SFFAS 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 extent of the risk of loss to the federal government from adverse events," FASAB Chairman Scott Showalter said in a news release.

SPONSORED REPORT

The technology assessment engagement

Are you working with the best technology? Do you know how to help your clients determine if their technology stack measures up? In this free report, J. Carlton Collins, CPA, explains how to answer those questions via a technology assessment engagement.

FEATURE

Maximizing the higher education tax credits

A counterintuitive strategy can save taxes by including otherwise excludable scholarships in gross income.