# ASC 310-944: Receivables — Financial Services—Insurance Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/944/) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:29:42.889Z to 2026-09-09T23:30:17.133Z Record version: sha256:a1762b7727eba47eb240346daee378137b85ecdf0306298b4ef75dab2aad0450 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944: Receivables — Financial Services—Insurance ### Machine-generated study aids ```json { "summary": "ASC 310-944 tells insurance entities how to account for receivables: mortgage loans held as investments, reinsurance recoverables, and premium receivables on financial guarantee insurance contracts. Mortgage loans are recognized as assets at principal (or cost if bought at a discount/premium) and carried at amortized cost with an allowance for expected credit losses under Topic 326-20; reinsurance recoverables must be reported gross as assets (no netting against related liabilities absent a legal right of setoff). For financial guarantee contracts with installment premiums, the premium receivable is measured at the present value of premiums expected to be collected using a risk-free rate at inception, with the discount accreted to earnings.", "key_points": [ "Mortgage loans shall be recognized as assets (944-310-25-1), measured initially at outstanding principal if acquired at par or at cost if purchased at a discount or premium (944-310-30-1), and subsequently at outstanding principal or amortized cost with an allowance for estimated uncollectible amounts (944-310-35-1).", "Realized gains and losses on mortgage loan investments are reported pretax in other income in the statement of earnings (or disclosed in the notes), amortization goes to investment income, and changes in the allowance for credit losses follow Subtopic 326-20 (944-310-45-1 through 45-4; 944-310-50-1).", "Ceding entities must report estimated reinsurance recoverables separately as assets for both assumption-and-novation contracts and contracts where the ceding entity is not relieved of legal liability to the policyholder (944-310-25-2; 944-310-45-5).", "No single valuation method is prescribed for reinsurance recoverables; disputed amounts are contingent losses under Subtopic 450-20, while expected credit losses on recoverables follow Subtopic 326-20 (944-310-35-4).", "Receivables and payables between a ceding entity and an individual reinsurer may be offset only if a legal right of setoff exists under Subtopic 210-20, even for affiliates (though affiliate amounts are eliminated in consolidation) (944-310-45-7).", "For installment-premium financial guarantee insurance contracts, the premium receivable equals the present value of premiums due or expected to be collected discounted at the risk-free rate at inception over the contract period, with the discount accreted through earnings (944-310-25-3; 944-310-30-2).", "An expected (shorter) period may be used only if a homogenous pool of contractually prepayable assets underlies the insured obligation and prepayments are probable and reasonably estimable; this is an entity-wide accounting policy election, and changes in prepayment assumptions adjust premium receivable and unearned premium revenue by equal amounts with no earnings effect, updating the discount rate to a current risk-free rate (944-310-30-3; 944-310-35-5)." ], "categories": [ "Recognition", "Initial measurement", "Subsequent measurement", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Exam traps here are the gross-reporting rule for reinsurance recoverables (you cannot net them against reserves unless a legal right of setoff exists) and the fact that a change in prepayment assumptions on a financial guarantee premium receivable is a balance-sheet-only adjustment—the offsetting change to unearned premium revenue means no gain or loss at the date of change, only a revised revenue pattern going forward.", "related_topics": [ "944-605", "944-40", "944-20", "326-20", "210-20", "450-20" ], "key_concepts": [ "mortgage loan receivables", "reinsurance recoverable", "premium receivable", "financial guarantee insurance contract", "unearned premium revenue", "risk-free discount rate accretion", "prepayment assumptions", "right of setoff" ] } ``` Source downloaded (UTC): 2026-09-09T23:29:42.889Z to 2026-09-09T23:29:42.889Z Record version: sha256:3e817be3a6538d412104ed0b053496cb35602ca14d64c37739cab25a78af0c4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/310/944/#00-status) SEC content: no ##### [310-944-00-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:42.889Z to 2026-09-09T23:29:42.889Z Record version: sha256:61b8b31063f5f46e8d29cb0da5f399294a16270c8012c94b4502a2fa26cdac04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Reinsurance RecoverableAddedAccounting Standards Update No. 2016-1912/14/2016
944-310-05-1AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-05-2AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-25-2AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-35-3AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-35-4AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-35-4AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-35-6AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-45-1AmendedAccounting Standards Update No. 2018-0907/16/2018
944-310-45-2AmendedAccounting Standards Update No. 2018-0907/16/2018
944-310-45-4AmendedAccounting Standards Update No. 2016-1306/16/2016
944-310-45-4ASupersededAccounting Standards Update No. 2016-1306/16/2016
944-310-45-5AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-45-6AmendedAccounting Standards Update No. 2016-1912/14/2016
944-310-50-1AmendedAccounting Standards Update No. 2018-0907/16/2018
944-310-50-2AmendedAccounting Standards Update No. 2016-1912/14/2016
Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:03b71054738ebfe5d4d209f0ade9e70ae202f31b2114ee421489d216c8cadb33 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/310/944/#05-overview-and-background) SEC content: no ##### [310-944-05-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:4c35d6ed7937b02454d7ca53e7fced520853d99eef552172a755f06e1f979a8a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to insurance entities on accounting for and financial reporting of receivables, including mortgage loan receivables and [reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits."). The guidance in this Subtopic is provided in the following three Subsections: 1. a General 2. b [Reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") Contracts 3. c Financial Guarantee Insurance Contracts. ### Reinsurance Contracts ##### [310-944-05-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:368ba664ccb1cfeda6424610f10318ce87ec9d5cbb6b93e1f151527b6e63fccc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [Reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of [reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits."). ### Financial Guarantee Insurance Contracts ##### [310-944-05-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:46.208Z to 2026-09-09T23:29:46.208Z Record version: sha256:d206eb9cfa29e95754f4ddbfd089783be7f35426e80463a3a4ef53dda9c90d71 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Financial Guarantee Insurance Contracts Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of premium receivable for financial guarantee insurance contracts. Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:8174d3d8890bae96c1c333037d9a27ec242ecbf6258b335224ea82c80017a9a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/310/944/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [310-944-15-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:da9e6334945cbaf94074c05a988345a8b153b5dde2e31593a9301b0d2650f6e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15. ### Reinsurance Contracts ##### [310-944-15-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:7bda3c1708b9ad7de659c7578c801ca286ac16cf1eaba03d2e608a1c500f4f3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The [Reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") Contracts Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific instrument qualifications noted below. #### Instruments ##### [310-944-15-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:dbc95bb0a60ad5e0b00c8bde7d3182e41a854e3c59ee62f76c537dfe9148b8df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Reinsurance Contracts Subsections of this Subtopic applies only to reinsurance contracts. For guidance on identifying a reinsurance contract, see the [Reinsurance Contracts Subsection](https://asc.understandingaccounting.org/asc/944/20/#15-scope-and-scope-exceptions) of Section 944-20-15. ### Financial Guarantee Insurance Contracts ##### [310-944-15-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-15-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:49.574Z to 2026-09-09T23:29:49.574Z Record version: sha256:b9d8afd45a1a657f1fee3babd40cab8a944fc3cbf2dd35d2c6b2817fd658deaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Financial Guarantee Insurance Contracts Subsections of this Subtopic applies to all financial guarantee insurance contracts. For guidance in identifying a financial guarantee insurance contract, see the Financial Guarantee Insurance Contracts Subsection of Section 944-20-15. Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:de99a205770c4af9f23c18c86b03284a2aca3a5ffaec2c6e8b38e530a83d0841 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/944/#25-recognition) SEC content: no #### Mortgage Loans ##### [310-944-25-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:12f9bc12bf99284367a9520cdab1a92cea68f984e4c05aa4dfe535acaae953bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mortgage loans shall be recognized as assets. ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-25-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:0a44ae28edf072355695d65cc3c7113df1a968b2df3f02bd7904f10b5fe21764 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Ceding entities shall report separately as assets estimated [reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits.") arising from both of the following types of contracts: 1. a [Reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contracts that are legal replacements of one insurer by another (often referred to as assumption and novation) 2. b Reinsurance contracts in which a [ceding entity](https://asc.understandingaccounting.org/glossary/c/#ceding-entity "The party that pays a reinsurance premium in a reinsurance transaction. The ceding entity receives the right to reimbursement from the assuming entity under the terms of the reinsurance contract.") is not relieved of the legal liability to its policyholder. ### Financial Guarantee Insurance Contracts ##### [310-944-25-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:56.043Z to 2026-09-09T23:29:56.043Z Record version: sha256:02bdd0de91bad95a6d9e8a146135f3bede4c9458d8272f9b6b80f2d138395d3f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-605-30-7](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-7) states that if the premiums are received as payments over the period of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at an amount equal to the present value of the premiums due or expected to be collected over the period of the financial guarantee insurance contract. Example 1 in Section 944-605-55 (see paragraph [944-605-55-16](https://asc.understandingaccounting.org/asc/605/944/#605-944-55-16)) illustrates the application of this paragraph. Paragraph [944-310-30-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-2) provides guidance on the discount rate and the period used. Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:ad32f99464644b144bd6fc13419213e64748b08e386dbdde2c32639320fb7ce6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/310/944/#30-initial-measurement) SEC content: no #### Mortgage Loans ##### [310-944-30-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:27bed0634e16d13341993ab374e16fb827d5c141b3a8450e333f03db56ec56e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mortgage loans recognized under paragraph [944-310-25-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-1) shall be measured initially at outstanding principal balances if acquired at par value, or at cost if purchased at a discount or premium. ### Financial Guarantee Insurance Contracts #### Receivable for Future Premiums ##### [310-944-30-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:7a957a5f1823526276aa4e5d82b138dce0b08ab541dd4a6cb46b7025fd25b1c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An insurance entity shall determine the present value of the premiums due or expected to be collected using a discount rate that reflects the risk-free rate at the inception of the contract. The risk-free rate shall be based on the contract period of the insurance contract unless the insurance entity is permitted to consider prepayments pursuant to the following paragraph. The discount amount shall be accreted on the premium receivable through earnings over that same period. Example 1 (see paragraph [944-310-55-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-1)) illustrates application of this guidance including the method of accretion. ##### [310-944-30-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:29:59.994Z to 2026-09-09T23:29:59.994Z Record version: sha256:5e07d77c7575f6d504472440c2ed7773c22fba139c2bee16caefa9cd294de476 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The period of a financial guarantee insurance contract is the expected period of risk that generally equates to the contract period. However, in some instances, the expected period of risk is significantly shorter than the full contract period due to expected prepayments. The expected period may be used only if a homogenous pool of assets underlying the insured financial obligation is contractually prepayable. In those instances, prepayment assumptions may be used to determine an expected period if those prepayments are probable and the timing and amount of prepayments can be reasonably estimated. The election to use prepayment assumptions to determine an expected period is an accounting policy decision (that is, it is not a contract-by-contract election). Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a2d68f3c454feb0a9a34141275f6d4f113f8aa0b04cf24d4389ba086ad47a79a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/310/944/#35-subsequent-measurement) SEC content: no #### Mortgage Loans ##### [310-944-35-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a3aec0f78db4c93978becfae49a5891be7556ce4767c6abfc0681af35fea071d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Mortgage loans recognized under paragraph [944-310-25-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-1) shall be measured subsequently at outstanding principal balances if acquired at par value, or at amortized cost if purchased at a discount or premium, with an allowance for estimated uncollectible amounts, if any. ##### [310-944-35-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:3e207a5361ece1af5e6eb944e2498b7b606715a11a831560179868a4a3a4b564 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-310-45-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-3) states that amortization and other related charges or credits shall be charged or credited to investment income. ##### [310-944-35-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:63a65aba02b1d3873bd8c137737e8659cac515354a2efb582f1e453f89b6aee0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-310-45-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-4) states that changes in the allowance for credit losses relating to mortgage loans shall be included in income as prescribed in Subtopic 326-20 on financial instruments measured at amortized cost. ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-35-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:7a5f57f7f801947b93821ab8e21fbe60145830d74392f5114624c7b5b37ed498 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because the valuation of [reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits.") depends on the terms of the [reinsurance](https://asc.understandingaccounting.org/glossary/r/#reinsurance "A transaction in which a reinsurer (assuming entity), for a consideration (premium), assumes all or part of a risk undertaken originally by another insurer (ceding entity). For indemnity reinsurance, the legal rights of the insured are not affected by the reinsurance transaction and the insurance entity issuing the insurance contract remains liable to the insured for payment of policy benefits. Assumption or novation reinsurance contracts that are legal replacements of one insurer by another extinguish the ceding entity's liability to the policyholder.") contract and on estimates used in measuring the liabilities relating to the reinsured contracts, this Subtopic does not stipulate a specific valuation method. An entity shall measure contingent losses relating to disputed amounts in accordance with Subtopic 450-20 on loss contingencies. However, the [ceding entity](https://asc.understandingaccounting.org/glossary/c/#ceding-entity "The party that pays a reinsurance premium in a reinsurance transaction. The ceding entity receives the right to reimbursement from the assuming entity under the terms of the reinsurance contract.") shall measure expected credit losses relating to reinsurance recoverables in accordance with Subtopic 326-20 on financial instruments measured at amortized cost. ### Financial Guarantee Insurance Contracts #### Unearned Premium Revenue ##### [310-944-35-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a5fcc608604d54f9ba063d67a6e9e355100efa943a8c075e0396ac1f10f1e772 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an expected period is used as the period of the financial guarantee insurance contract to measure the unearned premium revenue, an insurance entity shall adjust the prepayment assumptions when those assumptions change. The adjustment to the unearned premium revenue shall equal the adjustment to the premium receivable with no effect on earnings at the time of the adjustment. The discount rate shall be updated to a current risk-free rate only when prepayment assumptions change. Example 1 (see paragraph [944-310-55-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-1)) illustrates the accounting when prepayment assumptions change. ##### [310-944-35-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:a52b42e058d0496a7b9f223241e1039af321bf6ccda1bdfabd2593fdff5a2a5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An insurance entity shall measure expected credit losses relating to the premium receivable in accordance with Subtopic 326-20 on financial instruments measured at amortized cost with a corresponding adjustment to earnings. The insurance entity shall consider as part of its assessment of recognition and measurement of the claim liability (see the Financial Guarantee Insurance Contracts Subsections in Subtopic 944-40) whether the premiums expected to be collected (the premium receivable) are fully collectible. ##### [310-944-35-7](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:02.145Z to 2026-09-09T23:30:02.145Z Record version: sha256:2b915839b3960b2b59e4832e97328b2ad53d139242ed77e0706fb5d8aba00bc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-605-35-16](https://asc.understandingaccounting.org/asc/605/944/#605-944-35-16) states that in instances where a contract period is used as the period of the financial guarantee insurance contract to measure the unearned premium revenue, an insurance entity shall adjust the unearned premium revenue to reflect early principal payments as they occur. That paragraph states also that the adjustment to the unearned premium revenue shall equal the adjustment to the premium receivable. Source downloaded (UTC): 2026-09-09T23:30:06.079Z to 2026-09-09T23:30:06.079Z Record version: sha256:48d6acf5e38f7b380e5e0f8b80b844b04904b56ef7a3ffcf4ce736f29528bb80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/310/944/#40-derecognition) SEC content: no #### Mortgage Loans ##### [310-944-40-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:06.079Z to 2026-09-09T23:30:06.079Z Record version: sha256:dee0329edfd94756bb4c83b96370246ad2657c14ba87b34bfbf034d54f098bb3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-325-40-1](https://asc.understandingaccounting.org/asc/325/944/#325-944-40-1) states that realized gains and losses shall not be deferred, either directly or indirectly. Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:514251fa0360cceee5de2f8ff5e2989a1b5e6f5f79d04a1195458d13346c60b6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/310/944/#45-other-presentation-matters) SEC content: no #### Mortgage Loans ##### [310-944-45-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:9b27f83c7ef8e93d977e075f3ed6d610aacdb5c83983a6b9bc4c9b06f0837e5d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Realized gains and losses on investments in mortgage loans (except those that are accounted for as either hedges of net investments in foreign operations \[see Subtopic 815-35\] or cash flow hedges \[see Subtopic 815-30\]) shall be reported in the statement of earnings as a component of other income, on a pretax basis. ##### [310-944-45-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:e990c25db61cb66f5bba652b12ec94d3d7627fd826484f5a7cb4f96bf1ef5ca0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If not presented as a separate item in the statement of earnings, realized gains and losses shall be disclosed in the notes to financial statements (see paragraph [944-310-50-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-1)). ##### [310-944-45-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:75331a5ae9116a43392969bd1cb23a600a7ff112fced2da625f7ded4711c2558 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amortization and other related charges or credits shall be charged or credited to investment income. ##### [310-944-45-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:9d97ad8424651ff8fafa45ef42ab2cf1335e3dde69f19701d865b1e74e92a723 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in the allowance for credit losses relating to mortgage loans shall be included in income as prescribed in Subtopic 326-20 on financial instruments measured at amortized cost. ##### [310-944-45-4A](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-4A) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:d05c40f5f8cf2ac93c58321e2c39372df7b32fc4d532dd8694a769b66b3ff8b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2016-13](https://asc.understandingaccounting.org/updates/asu-2016-13/). ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-45-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:f9c3469588eda045e92eb25a8e0f6232ad206441156abe24e55c186359448e17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A [ceding entity](https://asc.understandingaccounting.org/glossary/c/#ceding-entity "The party that pays a reinsurance premium in a reinsurance transaction. The ceding entity receives the right to reimbursement from the assuming entity under the terms of the reinsurance contract.") shall report an estimated [reinsurance recoverable](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits.") arising from those contracts described in paragraph [944-310-25-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-25-2) separately as an asset. ##### [310-944-45-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:9bac7f0c61cbbb7772c37d2599f3515351894c7121f9df2d44f72f02c7eb4f1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although amounts recoverable on unasserted claims shall be reported as reinsurance recoverables, details of the amounts comprising reinsurance recoverables may be presented separately. ##### [310-944-45-7](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:08.084Z to 2026-09-09T23:30:08.084Z Record version: sha256:0e84893f86dee392b72ed5c729455d10aaf94e3b346b49d199cd98b061298b57 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Amounts receivable and payable between the ceding entity and an individual [reinsurer](https://asc.understandingaccounting.org/glossary/r/#reinsurer "The assuming entity in a reinsurance transaction.") shall be offset only if a legal right of setoff exists as defined in Subtopic 210-20, even if the ceding entity and reinsurer are affiliated entities. However, if the ceding entity and reinsurer are affiliated entities, the amounts shall be eliminated in consolidation when the affiliated entities are included in consolidated financial statements. Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:bfd7e3c584c58a4ba38424f64530e20f65a2282235b60a9cca717e44ce238564 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/310/944/#50-disclosure) SEC content: no #### Mortgage Loans ##### [310-944-50-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:5117815c4a31b5d214d53f91da7a66e513bb0543dc170e7a5dc4626476c9d0e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If realized gains and losses are not presented as a separate item in the statement of earnings, they shall be disclosed in the notes to financial statements. ### Reinsurance Contracts #### Reinsurance Recoverables ##### [310-944-50-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:5a2efa74cc7a1e02753c5f4abb1fe4186488dc77008b55d1e3f753ecf8e59548 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-310-45-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-45-6) states that, although amounts recoverable on unasserted claims shall be reported as [reinsurance recoverables](https://asc.understandingaccounting.org/glossary/r/#reinsurance-recoverable "All amounts recoverable from reinsurers for paid and unpaid claims and claim settlement expenses, including estimated amounts receivable for unsettled claims, claims incurred but not reported, or policy benefits."), details of the amounts comprising reinsurance recoverables may be presented separately. ### Financial Guarantee Insurance Contracts ##### [310-944-50-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:11.341Z to 2026-09-09T23:30:11.341Z Record version: sha256:999b9eac4771c7d2982e1befa93284ca8dcf0c09972cb55cfece0ebd81be2e80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To meet the disclosure objective in paragraph [944-20-50-7](https://asc.understandingaccounting.org/asc/944/20/#944-20-50-7), an insurance entity shall disclose all of the following information for each annual period and interim period: 1. a For financial guarantee insurance contracts where premiums are received as payments over the period of the contract, rather than at inception, all of the following: 1. 1 The premium receivable as of the date(s) of the statement of financial position and the line item in the statement of financial position where the amount is reported (if not presented separately) 2. 2 The unearned premium revenue as of the date(s) of the statement of financial position and the line item in the statement of financial position where the amount is reported (if not presented separately) 3. 3 The amount of accretion on the premium receivable and the line item in the statement of income where that amount is reported (if not presented separately) 4. 4 The weighted-average risk-free rate used to discount the premiums expected to be collected 5. 5 The weighted-average period of the premium receivable. 2. b A schedule of premiums expected to be collected related to the premium receivable detailing both of the following: 1. 1 The four quarters of the subsequent annual period and each of the next four annual periods 2. 2 The remaining periods aggregated in five-year increments. 3. c A rollforward of the premium receivable for the period, including all of the following: 1. 1 The beginning premium receivable 2. 2 Premium payments received 3. 3 New business written 4. 4 Adjustments to the premium receivable, including all of the following: 1. i Adjustments for changes in the period of a financial guarantee insurance contract 2. ii An explanation of why the adjustments in item (c)(4)(i) occurred 3. iii Accretion of the premium receivable discount 4. iv Other adjustments with explanations provided. 5. 5 The ending premium receivable. Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:847f0d0589f4dbaa0921acfe7f9dfeb312a95ab82fdc91c9d407539f9764d88e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-944-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/310/944/#55-implementation-guidance-and-illustrations) SEC content: no ### Financial Guarantee Insurance Contracts #### Illustrations ##### [310-944-55-1](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:13102a63eff80b499cfe38e5c92f5e812fc0743b1a8559f7b0213757bbd4f8bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-5). 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: - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F02D2C57-AB60-47BB-BA63-10101BC184C3-low.gif) Key Facts: Total principal outstanding "$75,000,000" Premium rate "100 basis points, annually, received at the beginning of the period" Contract period 10 years Initial expected period 7 years Discount rate at inception 5% (a) (a) "For simplicity, the current risk-free discount rate has not been updated in this example 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." ##### [310-944-55-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:8a1cedf627e2825b159aecb3378e40597b1d4d4cdf1f76d9a11c2399cebb43a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-57EA8E3B-70AA-409B-BF39-63434F02ECCB-low.gif) Table 1 Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Payments" "Present Value of Premiums Expected" 1 " $75,000,000 " " $6,500,000 " " $750,000 " (a) " $750,000 " (b) 2 " 68,500,000 " " 7,800,000 " " 685,000 " " 652,381 " 3 " 60,700,000 " " 9,100,000 " " 607,000 " " 550,567 " 4 " 51,600,000 " " 11,700,000 " " 516,000 " " 445,740 " 5 " 39,900,000 " " 15,600,000 " " 399,000 " " 328,258 " 6 " 24,300,000 " " 15,600,000 " " 243,000 " " 190,397 " 7 " 8,700,000 " " 8,700,000 " " 87,000 " " 64,921 " 8 - - - - 9 - - - - 10 - - - - Total " $328,700,000 " " $75,000,000 " " $3,287,000 " " $2,982,264 " "Constant rate 0.0090729 ($2,982,264 ÷ $328,700,000)" (a) "Calculated as expected insured principal amount outstanding multiplied by the premium rate, which for Year 1 is $75,000,000 × 0.01 (100 basis points)." (b) "Calculated as the present value of the expected premium payments for the appropriate number of periods, which for Year 1 is $750,000 ÷ (1 + 0.05) t-1, where t represents the current year." ##### [310-944-55-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:f26615578460e968ff14401300eaa0e07cc9ea1f9e870ed2f875d3e40ecf8b37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [310-944-55-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:717e0a7ecbce330a71235365939d2f6feb34cee88ca2b86c817d925efa9cc972 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-FF91F9B2-BDBB-4A42-BB13-812F93ABB2C0-low.gif) Year "Premium Receivable at Beginning of Year" "Expected Premium Payments" "Accretion of Discount on Premium Receivable" "Premium Receivable at End of Year" 1 " $2,982,264 " " $750,000 " " $111,613 " (a) " $2,343,877 " (b) 2 " 2,343,877 " " 685,000 " " 82,944 " " 1,741,821 " 3 " 1,741,821 " " 607,000 " " 56,741 " " 1,191,562 " 4 " 1,191,562 " " 516,000 " " 33,778 " " 709,340 " 5 " 709,340 " " 399,000 " " 15,517 " " 325,857 " 6 " 325,857 " " 243,000 " " 4,143 " " 87,000 " 7 " 87,000 " " 87,000 " - - 8 - - - - 9 - - - - 10 - - - - Total " $3,287,000 " " $304,736 " (a) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payment multiplied by the discount rate, which for Year 1 is ($2,982,264 - $750,000) × 5%." (b) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payments, plus the accretion of the discount on the premium receivable, which for Year 1 is $2,982,264 - $750,000 + $111,613." ##### [310-944-55-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:e9e7bd44c0c29464053556c18565c6ed6a7f39b142cd2964eaeb0762f2a287c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-4786419C-F5FF-4892-82B2-36EAFD4BD862-low.gif) Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Revenue Recognized" "Accretion of Discount on Premium Receivable (b)" "Expected Total Revenue Recognized" 1 " $75,000,000 " " $6,500,000 " " $680,468 " (a) " $111,613 " " $792,081 " (c) 2 " 68,500,000 " " 7,800,000 " " 621,494 " " 82,944 " " 704,438 " 3 " 60,700,000 " " 9,100,000 " " 550,725 " " 56,741 " " 607,466 " 4 " 51,600,000 " " 11,700,000 " " 468,162 " " 33,778 " " 501,940 " 5 " 39,900,000 " " 15,600,000 " " 362,009 " " 15,517 " " 377,526 " 6 " 24,300,000 " " 15,600,000 " " 220,472 " " 4,143 " " 224,615 " 7 " 8,700,000 " " 8,700,000 " " 78,934 " - " 78,934 " 8 - - - - - 9 - - - - - 10 - - - - - Total " $328,700,000 " " $75,000,000 " " $2,982,264 " " $304,736 " " $3,287,000 " (a) "Calculated as the expected insured principal amount outstanding multiplied by the constant rate, which for Year 1 is $75,000,000 × 0.0090729." (b) See column titled Accretion of Discount on Premium Receivable in the table in paragraph 944-310-55-4. (c) "Calculated as the sum of the expected premium revenue recognized and the accretion of the discount on the premium receivable, which for Year 1 is $680,468 + $111,613." ##### [310-944-55-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:f3d9ec5e3dba747cc101b4a3beeb5b5a778f5074ab9bab74472d0f4c8cef4c7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the reduction of the unearned premium revenue due to the recognition of premium revenue during each reporting period. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-5A51D8BD-380A-49AF-9B5B-71A87057FFE2-low.gif) Year "Beginning Unearned Premium Revenue" "Expected Premium Revenue Recognized (a)" "Ending Unearned Premium Revenue" 1 " $2,982,264 " " $680,468 " " $2,301,796 " (b) 2 " 2,301,796 " " 621,494 " " 1,680,302 " 3 " 1,680,302 " " 550,725 " " 1,129,577 " 4 " 1,129,577 " " 468,162 " " 661,415 " 5 " 661,415 " " 362,009 " " 299,406 " 6 " 299,406 " " 220,472 " " 78,934 " 7 " 78,934 " " 78,934 " - 8 - - - 9 - - - 10 - - - Total " $2,982,264 " (a) See column titled Expected Premium Revenue Recognized in the table in paragraph 944-310-55-5. (b) "Calculated as the beginning unearned premium revenue balance less the expected premium revenue recognized during the period, which for Year 1 is $2,982,264 - $680,468." ##### [310-944-55-7](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:af2d1fbce1676d6bbaed20f27e406ba3380db29e7703a0ad770a6b96cdc1340d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). ##### [310-944-55-8](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:da30450e657d23ad0794e0ad07eb80026ef328a299de3ee58a964356bcd6f249 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-2](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-2) 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](https://asc.understandingaccounting.org/asc/310/944/#310-944-35-5). If the discount rate had changed at the time of the change in prepayment assumptions, that new discount rate would be used. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-7E460698-63CB-49A7-8F0A-B3A32D8CA650-low.gif) Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Payments" "Present Value of Premiums Expected" 1 " $75,000,000 " " $6,500,000 " " $750,000 " (a) " $750,000 " (b) 2 " 68,500,000 " " 7,800,000 " " 685,000 " " 652,381 " 3 " 60,700,000 " " 5,350,000 " " 607,000 " " 550,567 " 4 " 55,350,000 " " 7,450,000 " " 553,500 " " 478,134 " 5 " 47,900,000 " " 11,600,000 " " 479,000 " " 394,074 " 6 " 36,300,000 " " 11,600,000 " " 363,000 " " 284,420 " 7 " 24,700,000 " " 8,450,000 " " 247,000 " " 184,315 " 8 " 16,250,000 " " 8,250,000 " " 162,500 " " 115,486 " 9 " 8,000,000 " " 8,000,000 " " 80,000 " " 54,148 " 10 - - - - Total " $392,700,000 " " $75,000,000 " " $3,927,000 " " $3,463,525 " "Constant rate 0.00881977 ($3,463,525 ÷ $392,700,000)" (a) "Calculated as expected insured principal amount outstanding multiplied by the premium rate, which for Year 1 is $75,000,000 × 0.01 (100 basis points)." (b) "Calculated as the present value of the expected premium payments for the appropriate number of periods, which for Year 1 is $750,000 ÷ (1 + 0.05) t-1, where t represents the current year." ##### [310-944-55-9](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:9f9432c2a28286e18811e7aa62ce98f641c3a47c38a2b4447b4dd6f38be83a51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-4) as if the new prepayment assumptions were used from inception. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-0F12EF47-085A-4226-89EC-041BCA2FBC06-low.gif) Year "Premium Receivable at Beginning of Year" "Expected Premium Payments" "Accretion of Discount on Premium Receivable" "Premium Receivable at End of Year" 1 " $3,463,525 " " $750,000 " " $135,676 " (a) " $2,849,201 " (b) 2 " 2,849,201 " " 685,000 " " 108,210 " " 2,272,411 " 3 " 2,272,411 " " 607,000 " " 83,270 " " 1,748,681 " 4 " 1,748,681 " " 553,500 " " 59,759 " " 1,254,940 " 5 " 1,254,940 " " 479,000 " " 38,797 " " 814,737 " 6 " 814,737 " " 363,000 " " 22,587 " " 474,324 " 7 " 474,324 " " 247,000 " " 11,366 " " 238,690 " 8 " 238,690 " " 162,500 " " 3,810 " " 80,000 " 9 " 80,000 " " 80,000 " - - 10 - - - - Total " $3,927,000 " " $463,475 " (a) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payment multiplied by the discount rate, which for Year 1 is ($3,463,525 - $750,000) × 5%." (b) "Calculated as the premium receivable balance at the beginning of the year less the expected premium payments, plus the accretion of the discount on the premium receivable, which for Year 1 is $3,463,525 - $750,000 + $135,676." ##### [310-944-55-10](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:7129a99315ed392be90a34d53138cfe4ef358f2dae5703405c13ced37d429bbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-5](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-5) 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. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-3183908A-4532-4069-9638-225C5AF50EA0-low.gif) Year "Expected Insured Principal Amounts Outstanding" "Expected Insured Principal Payments" "Expected Premium Revenue Recognized" "Accretion of Discount on Premium Receivable (b)" "Expected Total Revenue Recognized" 1 " $75,000,000 " " $6,500,000 " " $661,483 " (a) " $135,676 " " $797,159 " (c) 2 " 68,500,000 " " 7,800,000 " " 604,155 " " 108,210 " " 712,365 " 3 " 60,700,000 " " 5,350,000 " " 535,360 " " 83,270 " " 618,630 " 4 " 55,350,000 " " 7,450,000 " " 488,175 " " 59,759 " " 547,934 " 5 " 47,900,000 " " 11,600,000 " " 422,467 " " 38,797 " " 461,264 " 6 " 36,300,000 " " 11,600,000 " " 320,158 " " 22,587 " " 342,745 " 7 " 24,700,000 " " 8,450,000 " " 217,848 " " 11,366 " " 229,214 " 8 " 16,250,000 " " 8,250,000 " " 143,321 " " 3,810 " " 147,131 " 9 " 8,000,000 " " 8,000,000 " " 70,558 " - " 70,558 " 10 - - - - - Total " $392,700,000 " " $75,000,000 " " $3,463,525 " " $463,475 " " $3,927,000 " (a) "Calculated as the expected insured principal amount outstanding multiplied by the constant rate, which in Year 1 is $75,000,000 × 0.00881977." (b) "See column titled Accretion of Discount on Premium Receivable in the table in paragraph 944-310-55-9." (c) "Calculated as the sum of expected premium revenue recognized and the accretion of the discount on the premium receivable, which for Year 1 is $661,483 + $135,676." ##### [310-944-55-11](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:d2bb0edee0999c88a13a2c8fd48d4a72eb9c0c246a3e69b3dabfc3cb67cde9ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the information presented in the table in paragraph [944-310-55-6](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-6) as if the new prepayment assumptions were used from inception. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-CEF88900-B885-457B-A524-FA0667520F3F-low.gif) Year "Beginning Unearned Premium Revenue" "Expected Premium Revenue Recognized (a)" "Ending Unearned Premium Revenue" 1 " $3,463,525 " " $661,483 " " $2,802,042 " (b) 2 " 2,802,042 " " 604,155 " " 2,197,887 " 3 " 2,197,887 " " 535,360 " " 1,662,527 " 4 " 1,662,527 " " 488,175 " " 1,174,352 " 5 " 1,174,352 " " 422,467 " " 751,885 " 6 " 751,885 " " 320,158 " " 431,727 " 7 " 431,727 " " 217,848 " " 213,879 " 8 " 213,879 " " 143,321 " " 70,558 " 9 " 70,558 " " 70,558 " - 10 - - - Total " $3,463,525 " (a) See column titled Expected Premium Revenue Recognized in the table in paragraph 944-310-55-10. (b) "Calculated as the beginning unearned premium revenue balance less expected premium revenue recognized during the period, which for Year 1 is $3,463,525 - $661,483." ##### [310-944-55-12](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:675040c86465e86a74912e082c56b6f98a55b5d543d838fcb4a0774885014f68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 \[$2,272,411 from the table in paragraph [944-310-55-9](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-9)\] less the premium receivable end-of-year balance in Year 2 using the initial prepayment assumptions \[$1,741,821 from the table in paragraph [944-310-55-4](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-4)\]). ##### [310-944-55-13](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:71f8cca3a19314de461882d844a566df5447c99bfda3d1a9df527934d21920af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following calculation illustrates how the unearned premium revenue balance is determined at the beginning of Year 3. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-8EB3B37E-AC72-4B62-B34C-6F9A5471A134-low.gif) Beginning unearned premium revenue using original assumptions " $2,982,264 " (a) "Less: Premium revenue recognized to date in Years 1 and 2" " $1,301,962 " (b) Adjustment for change in prepayment assumptions " $530,590 " (c) "Adjusted unearned premium revenue at beginning of Year 3" " $2,210,892 " Sum of all expected insured principal amounts outstanding during each reporting period for Years 3-9 " $249,200,000 " (d) New constant rate 0.00887196 (e) (a) See column titled Present Value of Premiums Expected in the table in paragraph 944-330-55-2. (b) "Calculated as $680,468 + $621,494 (expected premium revenue recognized in Years 1 and 2 in the table in paragraph 944-310-55-5)." (c) See calculation in paragraph 944-310-55-12. (d) "Calculated as the sum of all insured principal amounts outstanding for Years 3-9 in the table in paragraph 944-310-55-8 ($60,700,000 + $55,350,000 + $47,900,000 + $36,300,000 + $24,700,000 + $16,250,000 + $8,000,000)." (e) "Calculated as the adjusted unearned premium revenue at the beginning of Year 3 divided by the sum of all expected insured principal amounts outstanding during each reporting period for Years 3 through 9, which equals $2,210,892 ÷ $249,200,000." ##### [310-944-55-14](https://asc.understandingaccounting.org/asc/310/944/#310-944-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:30:15.101Z to 2026-09-09T23:30:15.101Z Record version: sha256:3340354cd7387b65dcf41c9b77ed8748f6e405d9060be9e814898e394b5f86a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-078B42D4-6412-4860-8348-FE112013B10F-low.gif) Year "Premium Revenue Recognized" "Accretion of Discount on Premium Receivable" "Expected Premium Revenue Recognized" "Accretion of Discount on Premium Receivable" "Total Revenue Recognized" 1 " $680,468 " " $111,613 " " $792,081 " 2 " 621,494 " " 82,944 " " 704,438 " 3 " $538,528 " (a) " $83,270 " " 621,798 " 4 " 491,063 " " 59,759 " " 550,822 " 5 " 424,967 " " 38,797 " " 463,764 " 6 " 322,052 " " 22,587 " " 344,639 " 7 " 219,137 " " 11,366 " " 230,503 " 8 " 144,169 " " 3,810 " " 147,979 " 9 " 70,976 " - " 70,976 " 10 - - - Total " $1,301,962 " " $194,557 " " $2,210,892 " " $219,589 " " $3,927,000 " (a) "Calculated as the insured principal amount outstanding multiplied by the new constant rate, which for Year 3 is $60,700,000 × 0.00887196."