AICPA seeks feedback on insurance working drafts

The AICPA Financial Reporting Executive Committee (FinREC) is seeking feedback on several working drafts of accounting issues for insurance entities.

When completed, the drafts will be included in AICPA Auditing and Accounting Guides. Working drafts related to FASB’s new credit losses standard will be included in the Life and Health Insurance Entities guide, the new Allowance for Credit Losses guide, and the Property and Liability Insurance Entities guide. Those drafts are:

• Issue No. 34: Considerations Related to ASC Topic 326: Financial Instruments — Credit Losses, for Reinsurance Recoverables.
• Issue No. 44: Considerations Related to ASC Topic 326: Financial Instruments — Credit Losses, for Premiums Receivable.

A working draft related to FASB’s long-duration insurance contracts standard will be included in the AICPA’s Life and Health Insurance Entities guide when completed. That draft is Issue No. 2, Considerations for the Allocation of the Liability for Future Policy Benefits to Revised Units of Account at Transition to FASB ASU 2018-12, for Blocks of Business That Had Loss Recognition Prior to the Transition Date.

Feedback can be submitted to Kim Kushmerick at Kim.Kushmerick@aicpa-cima.com by Feb. 10.

— Ken Tysiac (Kenneth.Tysiac@aicpa-cima.com) is the JofA’s editorial director.