{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/805/944/#45-other-presentation-matters","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":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":"Demutualizations","heading":"Closed Block","paragraphs":[{"citation":"805-944-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0AAE32A6-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><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> assets, liabilities, revenues, and expenses </span></span><span class=\"sfragment\" id=\"sfr_0AAE34D9-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">shall be displayed together with all other assets, liabilities, revenues, and expenses of the insurance entity based on the nature of the particular item, </span></span><span class=\"sfragment\" id=\"sfr_0AAE3736-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">with appropriate disclosures relating to the closed block. </span></span><span class=\"sfragment\" id=\"sfr_0AAE39DA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See the <a href=\"/updates/page-2147479835/\" class=\"xref\">Demutualizations Subsection</a> of Section 944-805-50. </span></span></div></div>","snippet":"Closed block assets, liabilities, revenues, and expenses shall be displayed together with all other assets, liabilities, revenues, and expenses of the insurance entity based on the nature of the particular item, with app…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e99163a39dcb02d0ef446b450132a5ed27d2f562d2890daeaeeb87ae5f8cfedc","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3e8f2e36fabf30a4fcd8eb4c7d1074cf3708887f36e5b5b001ea417250d6f9cf","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}},{"block":"Demutualizations","heading":"Emergence of Earnings and Policyholder Dividend Obligation","paragraphs":[{"citation":"805-944-45-2","para":"45-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0AAE3C03-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Unrealized investment gains and losses, other items of accumulated other comprehensive income, and the amount of offsetting policyholder dividend obligation shall not be netted in the presentation of other comprehensive income. </span></span></div></div>","snippet":"Unrealized investment gains and losses, other items of accumulated other comprehensive income, and the amount of offsetting policyholder dividend obligation shall not be netted in the presentation of other comprehensive …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:26a66ece2046162f488bbbc11cc21371e2c12999abd27bd95321c02c981fc417","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e8027e15e55323d4554a184203a4f98bd3cb1301d8d4844879990096716615a3","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}},{"block":"Demutualizations","heading":"Expenses of Demutualization or Holding Entity Formation","paragraphs":[{"citation":"805-944-45-3","para":"45-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0AAE3E89-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In connection with a <a href=\"/glossary/d/#demutualization\" class=\"term\" title=\"The conversion of a mutual insurance entity to a stock insurance entity.\"><span>demutualization</span></a> or formation of a mutual insurance holding entity, an insurance entity will incur expenses, including those for legal services, actuarial services, printing, and postage. Direct and incremental costs related to a demutualization or formation of a mutual insurance holding entity shall be classified as a single line item within income from continuing operations. </span></span></div></div>","snippet":"In connection with a demutualization or formation of a mutual insurance holding entity, an insurance entity will incur expenses, including those for legal services, actuarial services, printing, and postage. Direct and i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b21cda789c853c5b3bca7de3dc19043e936730463c5479bada412a0b81711596","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce7c2e1ac47061c7d7f5a3f9db327516353cc4368a1a81060447e7c34ea72c78","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}},{"block":"Demutualizations","heading":"Date of Demutualization or Holding Entity Formation","paragraphs":[{"citation":"805-944-45-4","para":"45-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0AAE415B-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Depending on the form of demutualization, a reclassification of retained earnings at 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> may be appropriate. An insurance entity that demutualizes in a <a href=\"/glossary/d/#distribution-form-demutualization\" class=\"term\" title=\"A situation in which eligible policyholders receive stock, policy credits, additional policyholder benefits, cash, or rights to purchase stock at favorable terms.\"><span>distribution-form demutualization</span></a> shall reclassify all its retained earnings as of 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> to capital stock and additional paid-in capital accounts (the capital accounts). If the entity distributes cash or <a href=\"/glossary/p/#policy-credits\" class=\"term\" title=\"Additional values applied to a policy through dividends, increases in fund values, accumulation values or accumulation account values or extensions of coverages.\"><span>policy credits</span></a> to policyholders in lieu of capital stock, as part of the demutualization, the distribution shall be recorded as a direct reduction to the appropriate capital accounts. A <a href=\"/glossary/s/#subscription-form-demutualization\" class=\"term\" title=\"A situation in which eligible policyholders receive only the right to purchase stock in the insurance entity or its parent at terms essentially equivalent to the terms offered to independent third parties.\"><span>subscription-form demutualization</span></a> does not, by itself, result in reclassification of retained earnings. </span></span></div></div>","snippet":"Depending on the form of demutualization, a reclassification of retained earnings at the date of demutualization may be appropriate. An insurance entity that demutualizes in a distribution-form demutualization shall recl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b842dad1e3e630669de52c74c65b4cc2a3553eb78878505c6fda1d0413ca29b2","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}},{"citation":"805-944-45-5","para":"45-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_0AAE4430-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The equity accounts of a mutual insurance holding entity at the formation date shall be determined using the principles for transactions of entities under common control, with the amount of retained earnings of the demutualized insurance entity, before reclassification to the capital accounts, being reported as retained earnings of the mutual insurance holding entity. Because the accounting bases and carrying amounts of assets and liabilities are not changed as a consequence of demutualization or formation of a mutual insurance holding entity, the amounts in accumulated other comprehensive income also shall not be changed as a consequence of demutualization or formation of a mutual insurance holding entity. </span></span></div></div>","snippet":"The equity accounts of a mutual insurance holding entity at the formation date shall be determined using the principles for transactions of entities under common control, with the amount of retained earnings of the demut…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a4096535d1ecc8979d17c55eb875c3230fae4ec65e61efe78943ee8691cdf0a7","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a22f664d32a695304aed5bfa4158777709c64fc01e7d7d5271541a89a92ffec4","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bd00de540ff3c559a01dc63f4012a265c1dc749e140edfe2e8fbcd142cb6f2fd","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bd00de540ff3c559a01dc63f4012a265c1dc749e140edfe2e8fbcd142cb6f2fd","downloaded_from":"2026-09-10T01:26:58.447Z","last_downloaded_at":"2026-09-10T01:26:58.447Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478008","source_sha256":"fd8668a1f3a50953e93456c77f7f96b6c5d5907d700e7f2a1b91e118224f694a"}}