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

Taking stock of artificial intelligence

Artificial intelligence is either the greatest thing to ever happen to human work or the dread of our existence. This independently written report explores how AI will reshape the workplace and how analytically minded individuals can stand out.

PODCAST

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.