{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/825/944/#05-overview-and-background","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":"825","topic_title":"Financial Instruments","subtopic":"825-944","subtopic_title":"Financial Services—Insurance","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"825-944-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance to insurance entities on accounting for and financial reporting of financial instruments, including guidance on <a href=\"/glossary/i/#investment-contracts\" class=\"term\" title=\"Long-duration contracts that do not subject the insurance entity to risks arising from policyholder mortality or morbidity.\"><span>investment contracts</span></a> and implementation guidance on disclosures about concentrations of credit risk of <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> contracts. The guidance in this Subtopic is provided in the following two Subsections:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Reinsurance contracts.</div></li></ol></div></div>","snippet":"This Subtopic provides guidance to insurance entities on accounting for and financial reporting of financial instruments, including guidance on investment contracts and implementation guidance on disclosures about concen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3befa05a3f706fa92d1204bb478a38f770ec43de4433b3ee59e8c88c24262df5","downloaded_from":"2026-09-10T01:45:30.017Z","last_downloaded_at":"2026-09-10T01:45:30.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477037","source_sha256":"c31c8e1b24d3217569ec9e6252f9532d1dd2f89e2146f0c5b7589141468993ae"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c085d3e48de520e4bb907c6cb2a10a247544b3500977f91ea52da46f5e4b7153","downloaded_from":"2026-09-10T01:45:30.017Z","last_downloaded_at":"2026-09-10T01:45:30.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477037","source_sha256":"c31c8e1b24d3217569ec9e6252f9532d1dd2f89e2146f0c5b7589141468993ae"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"825-944-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Reinsurance Contracts Subsections of this Subtopic provide guidance to insurance entities on disclosures about concentrations of credit risk of <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> contracts.</div></div>","snippet":"The Reinsurance Contracts Subsections of this Subtopic provide guidance to insurance entities on disclosures about concentrations of credit risk of reinsurance contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36246bc22500972622739e786d48380e7e5b3d4322855e532a8aa153bebba010","downloaded_from":"2026-09-10T01:45:30.017Z","last_downloaded_at":"2026-09-10T01:45:30.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477037","source_sha256":"c31c8e1b24d3217569ec9e6252f9532d1dd2f89e2146f0c5b7589141468993ae"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e8ce03fc4ae883af95ecf1ae9a2a84346f6e841dcaf392662d1ea8a31467c6d","downloaded_from":"2026-09-10T01:45:30.017Z","last_downloaded_at":"2026-09-10T01:45:30.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477037","source_sha256":"c31c8e1b24d3217569ec9e6252f9532d1dd2f89e2146f0c5b7589141468993ae"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f7c0403e48a2f5032f988ffb828f9e392b26b829846a2eea217af3a9358e4c6","downloaded_from":"2026-09-10T01:45:30.017Z","last_downloaded_at":"2026-09-10T01:45:30.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477037","source_sha256":"c31c8e1b24d3217569ec9e6252f9532d1dd2f89e2146f0c5b7589141468993ae"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6f7c0403e48a2f5032f988ffb828f9e392b26b829846a2eea217af3a9358e4c6","downloaded_from":"2026-09-10T01:45:30.017Z","last_downloaded_at":"2026-09-10T01:45:30.017Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477037","source_sha256":"c31c8e1b24d3217569ec9e6252f9532d1dd2f89e2146f0c5b7589141468993ae"}}