{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/340/944/#05-overview-and-background","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":"340","topic_title":"Other Assets and Deferred Costs","subtopic":"340-944","subtopic_title":"Financial Services—Insurance","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"340-944-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses. The guidance in this Subtopic is provided in the following two Subsections:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><a href=\"/glossary/r/#reinsurance\" class=\"term\" title=\"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.\"><span>Reinsurance</span></a> contracts.</div></li></ol></div></div>","snippet":"This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses. The guidance in this Subtopic is provided in the following two Subsectio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f22fecd232a71d4958275ea6cdb4fba7df83a0c0c3e33c058f26316e6f8e260","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:825593d3a22b1a7d173c8b733a5525e6e12885020f7c9ae8aedeb4906529be29","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"340-944-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses related to <a href=\"/glossary/r/#reinsurance\" class=\"term\" title=\"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.\"><span>reinsurance</span></a> contracts.</div></div>","snippet":"This Subtopic provides guidance to insurance entities on the accounting for and financial reporting of certain deferred costs and prepaid expenses related to reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e39339ee66f1d8d06a5df8f9179f8579d6caeea0ea731eb4929337ed851c2bb3","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b679ab339b91e67487001191591667b6f15c065dcea105e1818f17cb580c062f","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:daf20bcc847847527ec0bf5cda68ac74a7a7ff7c9910a8db5061c570fc06b869","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:daf20bcc847847527ec0bf5cda68ac74a7a7ff7c9910a8db5061c570fc06b869","downloaded_from":"2026-09-09T23:57:59.765Z","last_downloaded_at":"2026-09-09T23:57:59.765Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478499","source_sha256":"a1fb67c40f668b0651549d4d6eae16cffddfecce9e96318f10552b5d96a2ddcd"}}