{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/944/#15-scope-and-scope-exceptions","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":"805","topic_title":"Business Combinations","subtopic":"805-944","subtopic_title":"Financial Services—Insurance","section":{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"805-944-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-6D9C18A3-ADAA-4660-A6E4-06A364A6BB5D.ditamap\" class=\"ditamap\">944-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 944-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:42b7760981dcc5e052a2386a36048649cc008ef3850d2d3b71c2175340ceedfc","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06fef17993bee7f6bd68ef8550122a8972aef0b1d65409e712413bbda7933cac","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}},{"block":"Demutualizations","heading":"Overall Guidance","paragraphs":[{"citation":"805-944-15-2","para":"15-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Demutualizations Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the <a href=\"/asc/805/944/#15-scope-and-scope-exceptions\" class=\"xref\">General Subsection</a> of this Section, with specific transaction exceptions and qualifications and other considerations noted below.</div></div>","snippet":"The Demutualizations Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Section, with specific transaction exceptions and qualifications and other consid…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1f628854c54e81fe6b963cde616d78c888076b774717b34c30f6afd2c559b1b8","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06191ee8e26ab3def60bb0e18c8a48c2a07d85911fd821f33573c108d8aebb27","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}},{"block":"Demutualizations","heading":"Transactions","paragraphs":[{"citation":"805-944-15-3","para":"15-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0A4D0ED8-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in the Demutualizations Subsections of this Subtopic applies to all formal closed blocks and to <a href=\"/glossary/c/#closed-block\" class=\"term\" title=\"A mechanism to preserve, over time, the reasonable dividend expectations of individual policyholders with individual life, health, or annuity policies for which dividends are currently being paid or are expected to be paid under the current dividend scale. A closed block comprises a defined, limited group of policies and a defined set of assets, and is governed by a set of operating rules.\"><span>closed block</span></a> alternative mechanisms to the extent the concepts are applicable to them, all of which are referred to as closed blocks in the Demutualizations Subsections of this Subtopic. </span></span></div></div>","snippet":"The guidance in the Demutualizations Subsections of this Subtopic applies to all formal closed blocks and to closed block alternative mechanisms to the extent the concepts are applicable to them, all of which are referre…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cfaf8b17f81b64a14216580ac596bfad3793982a9a0f27c79adf32190c79317f","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cbf162258fe7e61da8035d908b8bfe87d85f856302d1d84286ca138fea723a3f","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}},{"block":"Demutualizations","heading":"Other Considerations","paragraphs":[{"citation":"805-944-15-4","para":"15-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0A4D1013-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in the Demutualizations Subsections of this Subtopic does not address what constitutes a change in ownership or reporting entity that would require a change in basis for the reported assets and liabilities. </span></span></div></div>","snippet":"The guidance in the Demutualizations Subsections of this Subtopic does not address what constitutes a change in ownership or reporting entity that would require a change in basis for the reported assets and liabilities.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5809c43c183e322e87efe31909fe1b05843e3f516953bbd6aac03245c61ae789","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}},{"citation":"805-944-15-5","para":"15-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0A4D10FD-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The accounting guidance in Subtopic <a altsource=\"GUID-F4341DED-0F5B-433D-8291-11B4BCC32084.ditamap\" class=\"ditamap\">944-20</a> is the appropriate accounting method for participating life insurance contracts that meet the conditions of paragraph <a href=\"/asc/944/20/#944-20-15-3\" class=\"xref\">944-20-15-3</a> and, therefore, an insurance entity shall continue to apply that guidance to demutualized insurance entities' participating life insurance contracts issued before the <a href=\"/glossary/d/#date-of-demutualization\" class=\"term\" title=\"The date the plan of reorganization becomes effective.\"><span>date of demutualization</span></a> or formation of a mutual insurance holding entity. </span></span><span class=\"sfragment\" id=\"sfr_0A4D1205-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, the segregation of undistributed accumulated earnings on participating contracts is meaningful in a stock <a href=\"/glossary/l/#life-insurance-entity\" class=\"term\" title=\"An entity that can issue annuity, endowment, and accident and health insurance contracts as well as life insurance contracts. Life insurance entities may be either stock or mutual entities.\"><span>life insurance entity</span></a> because the objective of such presentation is to identify amounts that are not distributable to stockholders. Therefore, after the date of demutualization or formation of a mutual insurance holding entity, the provisions of paragraphs <a href=\"/asc/944/50/#944-50-25-2\" class=\"xref\">944-50-25-2</a> and <a href=\"/asc/944/50/#944-50-30-2\" class=\"xref\">944-50-30-2</a> relating to dividends on participating life insurance contracts shall apply to those contracts sold before the date of demutualization or formation of a mutual insurance holding entity. </span></span></div></div>","snippet":"The accounting guidance in Subtopic 944-20 is the appropriate accounting method for participating life insurance contracts that meet the conditions of paragraph 944-20-15-3 and, therefore, an insurance entity shall conti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a559cee70d7f3ebabe7c2116635328e04b5d8eb7aa95d5870458f08a5f1123f2","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8005287bc196d8ca451b297ecf9c0a93f00e213f57559d0ff9933b81599b870e","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:870b820fa7fc09997b350bd7b9987db30cb9aea7e3ef5431306d0af835fbf820","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:870b820fa7fc09997b350bd7b9987db30cb9aea7e3ef5431306d0af835fbf820","downloaded_from":"2026-09-10T01:26:46.496Z","last_downloaded_at":"2026-09-10T01:26:46.496Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478157","source_sha256":"15ab2b5106c958a1e69543c55aedb4c7d6b9adae4b5270697692cb5cddf7cdba"}}