{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/944/#55-implementation-guidance-and-illustrations","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"310","topic_title":"Receivables","subtopic":"310-944","subtopic_title":"Financial Services—Insurance","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":"Financial Guarantee Insurance Contracts","heading":"Illustrations","paragraphs":[{"citation":"310-944-55-1","para":"55-1","html":"
This Example illustrates the accounting when prepayment assumptions change and illustrates the resulting change to the expected period required by paragraph 944-310-35-5. This Example assumes that annual premiums are received as payments over the expected period of the financial guarantee insurance contract and further assumes all of the following:
","snippet":"This Example illustrates the accounting when prepayment assumptions change and illustrates the resulting change to the expected period required by paragraph 944-310-35-5. This Example assumes that annual premiums are rec…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:13102a63eff80b499cfe38e5c92f5e812fc0743b1a8559f7b0213757bbd4f8bf","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-2","para":"55-2","html":"
The following table illustrates all of the following, estimated at inception:
  1. a
    The expected insured principal amounts outstanding during each period
  2. b
    The expected insured principal payments
  3. c
    The expected premium payments
  4. d
    The present value of premiums expected.
","snippet":"The following table illustrates all of the following, estimated at inception:\n(a) The expected insured principal amounts outstanding during each period\n(b) The expected insured principal payments\n(c) The expected premium…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a1cedf627e2825b159aecb3378e40597b1d4d4cdf1f76d9a11c2399cebb43a0","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-3","para":"55-3","html":"
The constant rate is calculated in the table in the preceding paragraph as the ratio of the present value of the premiums expected to be collected and the sum of all insured principal amounts outstanding during each reporting period.
","snippet":"The constant rate is calculated in the table in the preceding paragraph as the ratio of the present value of the premiums expected to be collected and the sum of all insured principal amounts outstanding during each repo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f26615578460e968ff14401300eaa0e07cc9ea1f9e870ed2f875d3e40ecf8b37","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-4","para":"55-4","html":"
The following table presents the rollforward of the premium receivable from period to period. The premium receivable will decrease during the year as expected premium payments are received, and it will increase as a result of the accretion of the discount on the premium receivable each period that is recognized in earnings.
","snippet":"The following table presents the rollforward of the premium receivable from period to period. The premium receivable will decrease during the year as expected premium payments are received, and it will increase as a resu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:717e0a7ecbce330a71235365939d2f6feb34cee88ca2b86c817d925efa9cc972","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-5","para":"55-5","html":"
The following table illustrates that the expected total revenue recognized each period will be the sum of the expected premium revenue recognized each period based on the constant rate of 0.0090729 and the accretion of the discount on the premium receivable each period. The depiction of expected premium revenue recognized and accretion of discount on premium receivable in the table is not intended to draw any conclusions about the presentation of these amounts in the statement of income.
","snippet":"The following table illustrates that the expected total revenue recognized each period will be the sum of the expected premium revenue recognized each period based on the constant rate of 0.0090729 and the accretion of t…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e9e7bd44c0c29464053556c18565c6ed6a7f39b142cd2964eaeb0762f2a287c8","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-6","para":"55-6","html":"
The following table illustrates the reduction of the unearned premium revenue due to the recognition of premium revenue during each reporting period.
","snippet":"The following table illustrates the reduction of the unearned premium revenue due to the recognition of premium revenue during each reporting period.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3d9ec5e3dba747cc101b4a3beeb5b5a778f5074ab9bab74472d0f4c8cef4c7e","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-7","para":"55-7","html":"
At the beginning of Year 3, the insurance entity estimates that prepayments will differ from its initial assumptions. Its new estimate is that the expected period is nine years from inception (the change represents a change in assumptions and not a change due to an error, which would be accounted for in accordance with Topic 250).
","snippet":"At the beginning of Year 3, the insurance entity estimates that prepayments will differ from its initial assumptions. Its new estimate is that the expected period is nine years from inception (the change represents a cha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af2d1fbce1676d6bbaed20f27e406ba3380db29e7703a0ad770a6b96cdc1340d","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-8","para":"55-8","html":"
The following table illustrates the information presented in the table in paragraph 944-310-55-2 as if the new prepayment assumptions were used from inception. The constant rate calculated in the table is not the new constant rate, but, rather, is presented here to assist in understanding the calculations necessary to determine the adjustment. For simplicity, the discount rate has not been updated when the prepayment assumptions change as required by paragraph 944-310-35-5. If the discount rate had changed at the time of the change in prepayment assumptions, that new discount rate would be used.
","snippet":"The following table illustrates the information presented in the table in paragraph 944-310-55-2 as if the new prepayment assumptions were used from inception. The constant rate calculated in the table is not the new con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:da30450e657d23ad0794e0ad07eb80026ef328a299de3ee58a964356bcd6f249","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-9","para":"55-9","html":"
The following table illustrates the information presented in the table in paragraph 944-310-55-4 as if the new prepayment assumptions were used from inception.
","snippet":"The following table illustrates the information presented in the table in paragraph 944-310-55-4 as if the new prepayment assumptions were used from inception.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9f9432c2a28286e18811e7aa62ce98f641c3a47c38a2b4447b4dd6f38be83a51","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-10","para":"55-10","html":"
The following table illustrates the information presented in the table in paragraph 944-310-55-5 as if the new prepayment assumptions were used from inception. The depiction of expected premium revenue recognized and accretion of discount on premium receivable in the table is not intended to draw any conclusions about the presentation of these amounts in the statement of income.
","snippet":"The following table illustrates the information presented in the table in paragraph 944-310-55-5 as if the new prepayment assumptions were used from inception. The depiction of expected premium revenue recognized and acc…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7129a99315ed392be90a34d53138cfe4ef358f2dae5703405c13ced37d429bbd","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-11","para":"55-11","html":"
The following table illustrates the information presented in the table in paragraph 944-310-55-6 as if the new prepayment assumptions were used from inception.
","snippet":"The following table illustrates the information presented in the table in paragraph 944-310-55-6 as if the new prepayment assumptions were used from inception.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2bb0edee0999c88a13a2c8fd48d4a72eb9c0c246a3e69b3dabfc3cb67cde9ff","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-12","para":"55-12","html":"
Based on the new constant rate, the adjustment to the premium receivable and unearned premium revenue is an increase of $530,590 (calculated as the premium receivable end-of-year balance in Year 2 using the updated prepayment assumptions [$2,272,411 from the table in paragraph 944-310-55-9] less the premium receivable end-of-year balance in Year 2 using the initial prepayment assumptions [$1,741,821 from the table in paragraph 944-310-55-4]).
","snippet":"Based on the new constant rate, the adjustment to the premium receivable and unearned premium revenue is an increase of $530,590 (calculated as the premium receivable end-of-year balance in Year 2 using the updated prepa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:675040c86465e86a74912e082c56b6f98a55b5d543d838fcb4a0774885014f68","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-13","para":"55-13","html":"
The following calculation illustrates how the unearned premium revenue balance is determined at the beginning of Year 3.
","snippet":"The following calculation illustrates how the unearned premium revenue balance is determined at the beginning of Year 3.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:71f8cca3a19314de461882d844a566df5447c99bfda3d1a9df527934d21920af","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},{"citation":"310-944-55-14","para":"55-14","html":"
The following table illustrates both of the following:
  1. a
    The actual premium revenue recognized and discount accreted on the premium receivable for Years 1 and 2
  2. b
    The revised expected premium revenue recognition and accretion on the premium receivable from Years 3-9 based on the new prepayment assumptions.
The depiction of expected premium revenue recognized and accretion of discount on premium receivable in the table is not intended to draw any conclusions about the presentation of these amounts in the statement of income.
","snippet":"The following table illustrates both of the following:\n(a) The actual premium revenue recognized and discount accreted on the premium receivable for Years 1 and 2\n(b) The revised expected premium revenue recognition and …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3340354cd7387b65dcf41c9b77ed8748f6e405d9060be9e814898e394b5f86a4","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f41ccc5588bab2786934a9d6e9d2cb87b2b1494b12e27faf54d88ba7b025f36e","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:847f0d0589f4dbaa0921acfe7f9dfeb312a95ab82fdc91c9d407539f9764d88e","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:847f0d0589f4dbaa0921acfe7f9dfeb312a95ab82fdc91c9d407539f9764d88e","downloaded_from":"2026-09-09T23:30:15.101Z","last_downloaded_at":"2026-09-09T23:30:15.101Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478942","source_sha256":"5ac9ccfa14a6033d82a274f24ce7da684bee1ffda260f303c54e60d7f7fd56c2"}}