# ASC 605-944-30: Revenue Recognition — Financial Services—Insurance — 30 Initial Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/605/944/#30-initial-measurement) 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): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:8a97ae5f311f8862343e661b2174b453795d4532f35cace46d75592de9466c19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 605-944-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/605/944/#30-initial-measurement) SEC content: no ### Long-Duration Contracts #### Universal Life-Type Contracts with Death or Other Insurance Benefit Features ##### [605-944-30-1](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:a552d9407514c3f9fb305c21dc64c4d4dfbd27bffd943cd31b3950ce9281cb96 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A liability for unearned revenue to be recognized under paragraphs [944-605-25-5 through 25-7](https://asc.understandingaccounting.org/asc/605/944/#605-944-25-5) and [944-605-25-9 through 25-10](https://asc.understandingaccounting.org/asc/605/944/#605-944-25-9) shall be measured initially as the portion of such assessments that compensates the insurance entity for benefits to be provided in future periods. ##### [605-944-30-2](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:f426a3d19c85bb56d5d99db1f522fa5b4ecc80e69e97384939d43a5796afd9a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For contracts in which assessments are collected over a period significantly shorter than the period for which the contract is subject to [mortality](https://asc.understandingaccounting.org/glossary/m/#mortality "The relative incidence of death in a given time or place.") and [morbidity](https://asc.understandingaccounting.org/glossary/m/#morbidity "The relative incidence of disability due to disease or physical impairment.") risks, the assessment would be considered a [front-end fee](https://asc.understandingaccounting.org/glossary/f/#front-end-fees "See Initiation or Front-End Fees.") and accounted for under paragraphs [944-605-25-6 through 25-7](https://asc.understandingaccounting.org/asc/605/944/#605-944-25-6) . The amounts amortized into income shall be considered assessments for purposes of this paragraph. #### Limited-Payment Contracts ##### [605-944-30-2A](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-2A) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:d0ca2a06422ba60ac6ecf32012b283ec65c1eea0bb003a60bd742de89ae9a305 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assumptions used in measuring any [gross premium](https://asc.understandingaccounting.org/glossary/g/#gross-premium "The premium charged to a policyholder for an insurance contract. See also Net Premiums.") deferred in accordance with paragraph [944-605-25-4A](https://asc.understandingaccounting.org/asc/605/944/#605-944-25-4A) (that is, the deferred profit liability) shall be consistent with those used in estimating the [liability for future policy benefits](https://asc.understandingaccounting.org/glossary/l/#liability-for-future-policy-benefits "An accrued obligation to policyholders that relates to insured events, such as death or disability.") as described in paragraph [944-40-30-7](https://asc.understandingaccounting.org/asc/944/40/#944-40-30-7). #### Retrospective and Contingent Commission Arrangements ##### [605-944-30-3](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:1af4e8deb97c13fcbf4ad88e07b1cfa5489ce128fed0e94112c2ee21ecd260a9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The liability recognized under paragraph [944-605-25-14](https://asc.understandingaccounting.org/asc/605/944/#605-944-25-14) shall be based on experience and the provisions of the contract. ### Reinsurance Contracts #### Reinsurance of Long-Duration Contracts ##### [605-944-30-4](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:c8c22e960f6abaf59552d481411c9e7fd542f748182d37781b019cf6fec4cb1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The difference, if any, between amounts paid for 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.") contract and the amount of the liabilities for policy benefits relating to the underlying reinsured contracts is part of the estimated cost to be amortized. ### Financial Guarantee Insurance Contracts ##### [605-944-30-5](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:dc7378f2f1c7500919f0387dc399db521f6e3b70223ca3abd42d00dd71a5c9c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Initial measurement of the unearned premium revenue recognized under paragraph [944-605-25-25](https://asc.understandingaccounting.org/asc/605/944/#605-944-25-25) shall be equal to the present value of either of the following: 1. a If the criteria in paragraph [944-310-30-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-3) are met and used, the premiums expected to be collected over the period of the financial guarantee insurance contract 2. b If the criteria in paragraph [944-310-30-3](https://asc.understandingaccounting.org/asc/310/944/#310-944-30-3) are not met, the premiums due. ##### [605-944-30-6](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:22abafa39eba86d812a3f275e01cc7235bdf2899cb78fb0df55d40daa746fdea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the premium is a single premium received at the inception of the financial guarantee insurance contract, the insurance entity shall initially measure the unearned premium revenue at the amount received. ##### [605-944-30-7](https://asc.understandingaccounting.org/asc/605/944/#605-944-30-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:49:31.248Z to 2026-09-10T00:49:31.248Z Record version: sha256:03bfb861cdba49bf3611724bca3b766e01e1e4740af45831d497973689d92556 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 (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.