{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/944/#35-subsequent-measurement","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":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Insurance and Reinsurance Contracts Acquired","paragraphs":[{"citation":"805-944-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0A94990B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">After the business combination, the acquirer shall measure the intangible asset (or other liability) on a basis consistent with the related insurance or <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> liability. </span></span></div></div>","snippet":"After the business combination, the acquirer shall measure the intangible asset (or other liability) on a basis consistent with the related insurance or reinsurance liability.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6c1592b0fce4b40a50a89c03aeb64d9f677a0dfbe063c59f04aa49ded51b77a0","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0A949AA9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For example, for most short-duration contracts such as many property and liability insurance contracts, <a href=\"/glossary/c/#claim\" class=\"term\" title=\"A demand for payment of a policy benefit because of the occurrence of an insured event.\"><span>claim</span></a> liabilities are not discounted under generally accepted accounting principles (GAAP), so amortizing the intangible asset like a discount using an <a href=\"/glossary/i/#interest-method\" class=\"term\" title=\"The method used to arrive at a periodic interest cost (including amortization) that will represent a level effective rate on the sum of the face amount of the debt and (plus or minus) the unamortized premium or discount and expense at the beginning of each period.\"><span>interest method</span></a> could be an appropriate method. </span></span></div></div>","snippet":"For example, for most short-duration contracts such as many property and liability insurance contracts, claim liabilities are not discounted under generally accepted accounting principles (GAAP), so amortizing the intang…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1ce9cc477173fe188e1318d6a5d78f10145faa94b7da88635e2398faed0b639d","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-3","para":"35-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0A949D30-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For certain long-duration contracts such as traditional life insurance contracts, using a basis consistent with the measurement of the liability would be similar to the guidance provided in paragraph <a href=\"/asc/944/30/#944-30-35-3\" class=\"xref\">944-30-35-3</a>, which requires that deferred <a href=\"/glossary/a/#acquisition-costs\" class=\"term\" title=\"Costs that are related directly to the successful acquisition of new or renewal insurance contracts.\"><span>acquisition costs</span></a> be amortized using methods that include assumptions consistent with those used in estimating the <a href=\"/glossary/l/#liability-for-future-policy-benefits\" class=\"term\" title=\"An accrued obligation to policyholders that relates to insured events, such as death or disability.\"><span>liability for future policy benefits</span></a></span></span><span class=\"sfragment\" id=\"sfr_0A949E7B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">including subsequent revisions to those assumptions. Also, paragraph <a href=\"/asc/944/30/#944-30-35-63\" class=\"xref\">944-30-35-63</a> specifies that the present value of future profits is subject to premium deficiency testing in accordance with the provisions of Subtopic <a altsource=\"GUID-3ACB496D-B77C-4877-9E43-541B153CE38E.ditamap\" class=\"ditamap\">944-60</a>.</span></span></div></div>","snippet":"For certain long-duration contracts such as traditional life insurance contracts, using a basis consistent with the measurement of the liability would be similar to the guidance provided in paragraph 944-30-35-3, which r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:889ec66a42198c325a0a57937183020dcf0bda102b079a4b06ada04dcc461ab2","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:850ec2484e02a455e3a418c795fcc0f8a2fd51f5bbb0473a2c857c34fd6ad216","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"block":"Demutualizations","heading":"Policyholder Liabilities","paragraphs":[{"citation":"805-944-35-4","para":"35-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9C9881-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The policyholder liabilities for <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> participating life insurance contracts shall continue to be calculated under the provisions of Subtopic <a altsource=\"GUID-F4341DED-0F5B-433D-8291-11B4BCC32084.ditamap\" class=\"ditamap\">944-20</a> as well as the Demutualizations Subsections of this Subtopic. </span></span> </div> </div>","snippet":"The policyholder liabilities for closed block participating life insurance contracts shall continue to be calculated under the provisions of Subtopic 944-20 as well as the Demutualizations Subsections of this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7d735a8175c29a1c9f823c7ada6ca8be90915929bdc24ad9dd25eda1e1aa557e","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54f188a1d5728cdc33aa4101dadfad9076a27d2fc3aab5ac0a397864981005b1","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"block":"Demutualizations","heading":"Emergence of Earnings and Policyholder Dividend Obligation","paragraphs":[{"citation":"805-944-35-5","para":"35-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9C9A3A-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/805/944/#805-944-25-10\" class=\"xref\">944-805-25-10</a> states that the changes in the <a href=\"/glossary/n/#net-closed-block-liability\" class=\"term\" title=\"The carrying amount of closed block liabilities in excess of the carrying amount of closed block assets each adjusted to eliminate the effect of related amounts in accumulated other comprehensive income at the actuarial calculation date. Deferred acquisition costs are not assets of the closed block.\"><span>net closed block liability</span></a> over time represent the expected closed block contribution to the earnings of the insurer that inure to the benefit of the stockholders. </span></span> <span class=\"sfragment\" id=\"sfr_0A9C9BE6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Cumulative actual closed block earnings in excess of the cumulative expected periodic amounts reflected in the <a href=\"/glossary/a/#actuarial-calculation\" class=\"term\" title=\"The periodic expected changes in the net closed block liability (on the basis of generally accepted accounting principles [GAAP]), which is after the elimination of the effect of applicable items of other comprehensive income. The amortization of deferred acquisition costs is not a component of the actuarial calculation because deferred acquisition costs are not a closed block asset.\"><span>actuarial calculation</span></a> (see paragraph <a href=\"/asc/805/944/#805-944-30-3\" class=\"xref\">944-805-30-3</a>) do not inure to the stockholders and shall be recorded as an additional liability to closed block policyholders (referred to as a policyholder dividend obligation). </span></span> <span class=\"sfragment\" id=\"sfr_0A9C9D34-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Those amounts will result in additional future dividends to closed block policyholders unless otherwise offset by less-favorable-than-expected future performance of the closed block. </span></span> </div> </div>","snippet":"Paragraph 944-805-25-10 states that the changes in the net closed block liability over time represent the expected closed block contribution to the earnings of the insurer that inure to the benefit of the stockholders. C…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e6b9ba4548cb2e6f759bb11cb9517e4e7119c68cd501c0bb0ff45beaf79c032","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-6","para":"35-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9C9E86-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Paragraph <a href=\"/asc/805/944/#805-944-30-4\" class=\"xref\">944-805-30-4</a> states that the actuarial calculation required in paragraph <a href=\"/asc/805/944/#805-944-30-3\" class=\"xref\">944-805-30-3</a> shall continue to be used in subsequent accounting periods to determine the change in the policyholder dividend obligation. </span></span> <span class=\"sfragment\" id=\"sfr_0A9C9FD8-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">That paragraph states that the actuarial calculation shall not be revised in future accounting periods. </span></span> </div> </div>","snippet":"Paragraph 944-805-30-4 states that the actuarial calculation required in paragraph 944-805-30-3 shall continue to be used in subsequent accounting periods to determine the change in the policyholder dividend obligation. …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:53f3157be29dfb432dfc8a524bd3f335add478c0bfa5303a3e3b1ca92b4f68cd","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-7","para":"35-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CA10C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount of the policyholder dividend obligation shall be determined by comparing cumulative actual earnings of the closed block from the <a href=\"/glossary/a/#actuarial-calculation-date\" class=\"term\" title=\"The date as of which the actuarial calculation is performed, which is as of the date of demutualization or formation of a mutual insurance holding entity.\"><span>actuarial calculation date</span></a> to the date of measurement with the amount of cumulative expected earnings based on the actuarial calculation for the same period. </span></span> </div> </div>","snippet":"The amount of the policyholder dividend obligation shall be determined by comparing cumulative actual earnings of the closed block from the actuarial calculation date to the date of measurement with the amount of cumulat…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e604ece9a88756a1a21e96db170367a0abe8a787c1fe1c4d0ac49823dba763e","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-8","para":"35-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CA261-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Cumulative actual earnings in excess of cumulative expected earnings based on the actuarial calculation shall be recorded as a policyholder dividend obligation. </span></span> </div> </div>","snippet":"Cumulative actual earnings in excess of cumulative expected earnings based on the actuarial calculation shall be recorded as a policyholder dividend obligation.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f337420da560a8b9389cb5fefbf28fae02aa00f31ce67d669d1bbbfc19b23858","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-9","para":"35-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CA3A9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Unrealized investment gains and losses and other amounts related to the closed block normally reported in accumulated other comprehensive income that have arisen after the actuarial calculation date shall be included in the determination of the amount of the policyholder dividend obligation limited, in the case of losses, to the extent that the policyholder dividend obligation is otherwise positive. </span></span> </div> </div>","snippet":"Unrealized investment gains and losses and other amounts related to the closed block normally reported in accumulated other comprehensive income that have arisen after the actuarial calculation date shall be included in …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f7181275c2746d0ed9ebb45a2e18219d3bbe41e2e21bb18a178a4b9dc9d1dc8","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-10","para":"35-10","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CA4E6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Unrealized investment gains and losses and other items related to the closed block normally reported in accumulated other comprehensive income that have arisen at or after the actuarial calculation date shall continue to be reported in accumulated other comprehensive income. </span></span> </div> </div>","snippet":"Unrealized investment gains and losses and other items related to the closed block normally reported in accumulated other comprehensive income that have arisen at or after the actuarial calculation date shall continue to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c03acb374bf0343e9deb0109cd7618f64582beeaf08820a7c44220d75e6dd2b8","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-11","para":"35-11","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CA62F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Amounts related to the closed block that have arisen after the actuarial calculation date shall enter into the determination of the policyholder dividend obligation with an offsetting amount reported in accumulated other comprehensive income. </span></span> <span class=\"sfragment\" id=\"sfr_0A9CA76F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The amount charged to policyholder dividend obligation for losses shall be limited to the extent that the policyholder dividend obligation is otherwise positive. </span></span> <span class=\"sfragment\" id=\"sfr_0A9CA8A1-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Those amounts shall be reported in the income statement and the amounts previously reported in other comprehensive income shall be reversed when investment gains and losses and other items of other comprehensive income are realized. </span></span> </div> </div>","snippet":"Amounts related to the closed block that have arisen after the actuarial calculation date shall enter into the determination of the policyholder dividend obligation with an offsetting amount reported in accumulated other…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:26e4a8197793631bc362a71d2a3f4e90d0eaad89471db815a1291d46132a40ab","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-12","para":"35-12","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CA9EA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Unrealized investment losses and other loss items related to the closed block that would result in a negative policyholder dividend obligation shall be recognized in other comprehensive income applicable to stockholders—the policyholder dividend obligation account may not have a negative balance. </span></span> </div> </div>","snippet":"Unrealized investment losses and other loss items related to the closed block that would result in a negative policyholder dividend obligation shall be recognized in other comprehensive income applicable to stockholders—…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:61fb908ed023602619512e55ac13fb63a1a3564e0af9877cb0d81daee5d2905e","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-13","para":"35-13","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CAB29-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The policyholder dividend obligation will decrease if experience is less favorable than expected and the dividend scale is not commensurately reduced. </span></span> </div> </div>","snippet":"The policyholder dividend obligation will decrease if experience is less favorable than expected and the dividend scale is not commensurately reduced.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c095507750f90fe1739f396921e453e90c8e375c9429d7092490e6a21a241bc1","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"citation":"805-944-35-14","para":"35-14","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CAC51-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If dividends paid are higher than originally expected in the dividend scale, the policyholder dividend obligation will decrease. </span></span> </div> </div>","snippet":"If dividends paid are higher than originally expected in the dividend scale, the policyholder dividend obligation will decrease.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f64d62610e0febe1e79f600c84264530df4b117f6fe722ffd5d2bea223fc7058","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9d4669803814314f2ef4401d93cfd5443ea463cf36918e9dc9917817d82458a3","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},{"block":"Demutualizations","heading":"Other Considerations","paragraphs":[{"citation":"805-944-35-15","para":"35-15","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_0A9CAD85-6E94-1014-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> shall be applied to demutualized insurance entity participating life insurance contracts within its scope that are issued after 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_0A9CAEAB-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The segregation of undistributed accumulated earnings on participating life insurance contracts in excess of amounts that inure to stockholders is meaningful in a stock life insurance entity because the objective of such presentation is to identify amounts that are not distributable to stockholders. </span></span> <span class=\"sfragment\" id=\"sfr_0A9CAFEB-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Therefore, the guidance in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/944/50/#944-50-25-1\" class=\"xref\">944-50-25-1 through 25-2</a></div> and <div class=\"xref-range displayInline\"><a href=\"/asc/944/50/#944-50-30-1\" class=\"xref\">944-50-30-1 through 30-2</a></div> relating to dividends on participating life insurance contracts applies to contracts that are sold after the date of demutualization or formation of a mutual insurance holding entity within the scope of Subtopic <a altsource=\"GUID-F4341DED-0F5B-433D-8291-11B4BCC32084.ditamap\" class=\"ditamap\">944-20</a>. </span></span> <span class=\"sfragment\" id=\"sfr_0A9CB11C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The guidance in those paragraphs shall also be applied by stock insurance entities with respect to participating life insurance contracts for which limitations exist on the amount of net income that may be distributed to stockholders. </span></span> <span class=\"sfragment\" id=\"sfr_0A9CB245-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If there is a limitation on the amount of income from participating life insurance contracts issued after the date of demutualization or formation of a mutual insurance holding entity that may be distributed to stockholders, the policyholders' share of income on those contracts that may not be distributed to stockholders shall be charged to operations with a corresponding credit to a liability. </span></span> <span class=\"sfragment\" id=\"sfr_0A9CB356-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Dividends paid to participating policyholders reduce that liability. </span></span> </div> </div>","snippet":"The accounting guidance in Subtopic 944-20 shall be applied to demutualized insurance entity participating life insurance contracts within its scope that are issued after the date of demutualization or formation of a mut…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03431c2a668f60a2be000dbc3d7263f82bfbdcc974bac19c6b21ba67a2575524","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0737583ef2cd12761f75a82ad49186d31a788aa66a45e3b4af770f12b315c655","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2d1fd53795cf6b026cbc83c2a6cedeec5608d211f73b7a7de1acacd5e8c722a","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2d1fd53795cf6b026cbc83c2a6cedeec5608d211f73b7a7de1acacd5e8c722a","downloaded_from":"2026-09-10T01:26:56.608Z","last_downloaded_at":"2026-09-10T01:26:56.608Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477922","source_sha256":"0ce0a08e11997394ae11159371c137fe615f2ec6b3f4ed11715dd4d1afa3f8e6"}}