# ASC 805-944-15: Business Combinations — Financial Services—Insurance — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/805/944/#15-scope-and-scope-exceptions) 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): 2026-09-10T01:26:46.496Z to 2026-09-10T01:26:46.496Z Record version: sha256:870b820fa7fc09997b350bd7b9987db30cb9aea7e3ef5431306d0af835fbf820 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 805-944-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/805/944/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [805-944-15-1](https://asc.understandingaccounting.org/asc/805/944/#805-944-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:26:46.496Z to 2026-09-10T01:26:46.496Z Record version: sha256:42b7760981dcc5e052a2386a36048649cc008ef3850d2d3b71c2175340ceedfc 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. ### Demutualizations ##### [805-944-15-2](https://asc.understandingaccounting.org/asc/805/944/#805-944-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:26:46.496Z to 2026-09-10T01:26:46.496Z Record version: sha256:1f628854c54e81fe6b963cde616d78c888076b774717b34c30f6afd2c559b1b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Demutualizations Subsections of this Subtopic follow the same Scope and Scope Exceptions as outlined in the [General Subsection](https://asc.understandingaccounting.org/asc/805/944/#15-scope-and-scope-exceptions) of this Section, with specific transaction exceptions and qualifications and other considerations noted below. #### Transactions ##### [805-944-15-3](https://asc.understandingaccounting.org/asc/805/944/#805-944-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:26:46.496Z to 2026-09-10T01:26:46.496Z Record version: sha256:cfaf8b17f81b64a14216580ac596bfad3793982a9a0f27c79adf32190c79317f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Demutualizations Subsections of this Subtopic applies to all formal closed blocks and to [closed block](https://asc.understandingaccounting.org/glossary/c/#closed-block "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.") 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. #### Other Considerations ##### [805-944-15-4](https://asc.understandingaccounting.org/asc/805/944/#805-944-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:26:46.496Z to 2026-09-10T01:26:46.496Z Record version: sha256:5809c43c183e322e87efe31909fe1b05843e3f516953bbd6aac03245c61ae789 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [805-944-15-5](https://asc.understandingaccounting.org/asc/805/944/#805-944-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:26:46.496Z to 2026-09-10T01:26:46.496Z Record version: sha256:a559cee70d7f3ebabe7c2116635328e04b5d8eb7aa95d5870458f08a5f1123f2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/944/20/#944-20-15-3) and, therefore, an insurance entity shall continue to apply that guidance to demutualized insurance entities' participating life insurance contracts issued before the [date of demutualization](https://asc.understandingaccounting.org/glossary/d/#date-of-demutualization "The date the plan of reorganization becomes effective.") or formation of a mutual insurance holding entity. However, the segregation of undistributed accumulated earnings on participating contracts is meaningful in a stock [life insurance entity](https://asc.understandingaccounting.org/glossary/l/#life-insurance-entity "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.") 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 [944-50-25-2](https://asc.understandingaccounting.org/asc/944/50/#944-50-25-2) and [944-50-30-2](https://asc.understandingaccounting.org/asc/944/50/#944-50-30-2) 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.