ASC

ASC 944-10

Overall

944 Financial Services—Insurance

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In brief

IntroductoryIndustry-specificRecognitionPresentation

ASC 944-10 is the Overall subtopic of the Financial Services—Insurance Topic; it serves as the roadmap and scope gate for all insurance-specific accounting guidance. It lists the Topic's Subtopics (acquisition costs, claim costs and liabilities for future policy benefits, policyholder dividends, premium deficiency, separate accounts, and the statement/disclosure subtopics) and identifies the four contract-type Subsections used throughout: short-duration, long-duration, reinsurance, and financial guarantee insurance contracts. The guidance is incremental industry-specific guidance—entities in scope must still apply all other applicable GAAP.

Key points (7)
  • The Topic provides guidance on financial accounting and reporting by insurance entities and is organized into Subtopics including Insurance Activities, Acquisition Costs, Claim Costs and Liabilities for Future Policy Benefits, Policyholder Dividends, Premium Deficiency and Loss Recognition, and Separate Accounts (944-10-05-1).
  • Guidance applying only to a specific type of contract is presented in four Subsections: Short-Duration Contracts, Long-Duration Contracts, Reinsurance Contracts, and Financial Guarantee Insurance Contracts (944-10-05-2).
  • The Subtopics provide only incremental industry-specific guidance; entities in scope must also comply with applicable guidance outside this Topic (944-10-15-1).
  • Scope covers life and health insurers (stock and mutual) and property and liability (property and casualty) insurers (stock and mutual) (944-10-15-2(a)-(b)).
  • Scope also reaches title, assessment, mortgage guaranty, financial guaranty, and captive insurance entities, fraternal benefit societies, syndicates, reinsurance entities, and reciprocal or interinsurance exchanges (944-10-15-2(c)-(l)).
  • Pools are within scope except public-entity risk pools, which are excluded (944-10-15-2(h)).
  • Former subparagraphs 944-10-05-1(l) and (m) were superseded by ASU 2016-01, and the transition paragraph 944-10-65-1 was superseded after the ASU 2010-26 transition period ended.

For students. This is the gateway subtopic: before applying any insurance accounting rule, confirm the entity is in scope and identify whether the contract is short-duration or long-duration, because that classification drives premium recognition, liability measurement, and acquisition cost accounting. A common misunderstanding is treating ASC 944 as a self-contained framework—it is only incremental guidance, so ordinary GAAP (e.g., financial instruments, income taxes) still applies.

insurance entityincremental industry-specific guidanceshort-duration contractslong-duration contractsreinsurance contractsfinancial guarantee insurance contractsscope of insurance accountingcaptive and reciprocal insurers

Machine-generated study aid for ASC 944-10. Check the source paragraphs below.

944-10-00Status

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944-10-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
944-10-05-1AmendedAccounting Standards Update No. 2016-0101/05/2016
944-10-05-2AmendedAccounting Standards Update No. 2016-1912/14/2016
944-10-65-1AddedAccounting Standards Update No. 2010-2610/13/2010

944-10-05Overview and Background

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944-10-05-1
The Financial Services—Insurance Topic provides guidance on financial accounting and reporting by insurance entities. The Financial Services—Insurance Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Insurance Activities
  3. c
    Acquisition Costs
  4. d
    Claim Costs and Liabilities for Future Policy Benefits
  5. e
    Policyholder Dividends
  6. f
    Premium Deficiency and Loss Recognition
  7. g
    Separate Accounts
  8. h
    Balance Sheet
  9. i
    Income Statement
  10. j
    Notes to Financial Statements
  11. k
    Receivables
  12. l
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
  13. m
    Subparagraph superseded by Accounting Standards Update No. 2016-01.
  14. n
    Other Assets and Deferred Costs
  15. o
    Property, Plant, and Equipment
  16. p
    Liabilities
  17. q
    Debt
  18. r
    Equity
  19. s
    Revenue Recognition
  20. t
    Other Expenses
  21. u
    Income Taxes
  22. v
    Business Combinations
  23. w
    Derivatives and Hedging
  24. x
    Financial Instruments.
944-10-05-2
Guidance that applies only to a specific type of contract has been presented in the following four subsections:
  1. a
    Short-Duration Contracts
  2. b
    Long-Duration Contracts
  3. c
    Reinsurance Contracts
  4. d
    Financial Guarantee Insurance Contracts.
944-10-05-3
Each Subtopic provides background on the guidance provided. Each Subtopic identifies any additional Subsections used.

944-10-15Scope and Scope Exceptions

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Overall Guidance

944-10-15-1
The Subtopics within the Financial Services—Insurance Topic provide only incremental industry-specific guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Financial Services—Insurance Subtopics. Entities within the scope of this Topic shall also comply with the applicable guidance not included in this Topic.

Entities

944-10-15-2
The guidance in the Financial Services—Insurance Topic applies to all of the following entities:
  1. a
    Life and health insurance entities, including both:
    1. 1
      Stock life insurance entities
    2. 2
      Mutual life insurance entities.
  2. b
    Property and liability insurance entities (also known as property and casualty insurance entities), which include all of the following entities:
    1. 1
      Stock entities
    2. 2
      Mutual entities.
    3. 3
      Paragraph not used.
  3. c
    Title insurance entities
  4. d
    Assessment entities
  5. e
    Fraternal benefit societies
  6. f
    Mortgage guaranty insurance entities
  7. g
    Financial guaranty insurance entities
  8. h
    Pools other than public-entity risk pools
  9. i
    Syndicates
  10. j
    Captive insurance entities
  11. k
    Reinsurance entities
  12. l
    Reciprocal exchange or interinsurance exchange.

944-10-65Transition and Open Effective Date Information

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944-10-65-1
Paragraph superseded on 06/17/2013 after the end of the transition period stated in Accounting Standards Update No. 2010-26, Financial Services—Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts.

944-10-S00StatusSEC

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944-10-S00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
944-10-S99-1 through S99-3
 Amended Accounting Standards Update No. 2019-07 07/26/2019
944-10-S99-1 Amended Accounting Standards Update No. 2010-21 08/02/2010
944-10-S99-3 Amended Accounting Standards Update No. 2010-21 08/02/2010

944-10-S15Scope and Scope ExceptionsSEC

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Entities

944-10-S15-1
See paragraph 944-10-S99-1, Regulation S-X Rule 7-01, for the entities required to comply with the SEC requirements in this Subtopic.

944-10-S45Other Presentation MattersSEC

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944-10-S45-1
See paragraph 944-10-S99-2, Regulation S-X Rule 7-02, for the requirements pertaining to the presentation of financial statements for insurance entities.

944-10-S50DisclosureSEC

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Supplemental Schedules

944-10-S50-1
See paragraph 944-10-S99-3, Regulation S-X Rule 7-05, for the required supplemental schedules in reports of insurance entities.

944-10-S99SEC MaterialsSEC

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SEC Rules, Regulations, and Interpretations

944-10-S99-1
The following is the text of Regulation S-X Rule 7-01, Application of §§210.7-01 to 210.7-05 (17 CFR 210.7-01).
  • This article shall be applicable to financial statements filed for insurance companies.
944-10-S99-2
The following is the text of Regulation S-X Rule 7-02, General Requirement (17 CFR 210.7-02).
  • (a) The requirements of the general rules in §§ 210.1-01 to 210.4-10 (Articles 1, 2, 3, 3A and 4) shall be applicable except where they differ from requirements of §§ 210.7-01 to 210.7-05.
  • (b) Financial statements filed for mutual life insurance companies and wholly owned stock insurance company subsidiaries of mutual life insurance companies may be prepared in accordance with statutory accounting requirements. Financial statements prepared in accordance with statutory accounting requirements may be condensed as appropriate, but the amounts to be reported for net gain from operations (or net income or loss) and total capital and surplus (or surplus as regards policyholders) shall be the same as those reported on the corresponding Annual Statement.
944-10-S99-3
The following is the text of Regulation S-X Rule 7-05, What Schedules Are to Be Filed (17 CFR 210.7-05).
  • (a) Except as expressly provided otherwise in the applicable form:
    • (1) The schedule specified below in this section as Schedules I shall be as of the date of the most recent audited balance sheet for each person or group.
    • (2) The schedules specified in this section as Schedule IV and V shall be filed for each period for which an audited statement of comprehensive income is required to be filed for each person or group.
    • (3) Schedules II, III and V shall be filed as of the date and for periods specified in the schedule.
  • (b) When information is required in schedules for both the registrant and the registrant and its subsidiaries consolidated it may be presented in the form of a single schedule: Provided, That items pertaining to the registrant are shown separately and that such single schedule affords a properly summarized presentation of the facts. If the information required by any schedule (including the notes thereto) may be shown in the related financial statement or in a note thereto without making such statement unclear or confusing, that procedure may be followed and the schedule omitted.
  • (c) The schedules shall be examined by the independent accountant.
  • Schedule I—Summary of investments—other than investments in related parties. The schedule prescribed by § 210.12-15 shall be filed in support of caption 1 of the most recent audited balance sheet.
  • Schedule II—Condensed financial information of registrant. The schedule prescribed by § 210.12-04 shall be filed when the restricted net assets (§ 210.102(dd)) of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year.
  • Schedule III—Supplementary insurance information. The schedule prescribed by § 210.12-16 shall be filed giving segment detail in support of various balance sheet and statement of comprehensive income captions. The required balance sheet information shall be presented as of the date of each audited balance sheet filed, and the statement of comprehensive income information shall be presented for each period for which an audited statement of comprehensive income is required to be filed, for each person or group.
  • Schedule IV—Reinsurance. The schedule prescribed by § 210.12-17 shall be filed for reinsurance ceded and assumed.
  • Schedule V—Valuation and qualifying accounts. The schedule prescribed by § 210.12-09 shall be filed in support of valuation and qualifying accounts included in the balance sheet (see § 210.4-02).
  • Schedule VI—Supplemental Information Concerning Property-Casualty Insurance Operations. The information required by § 210.12-18 shall be presented as of the same dates and for the same periods for which the information is reflected in the audited consolidated financial statements required by §§ 210.3-01 and 3-02. The schedule may be omitted if reserves for unpaid property-casualty claims and claim adjustment expenses of the registrant and its consolidated subsidiaries, its unconsolidated subsidiaries and its 50%-or-less-owned equity basis investees did not in the aggregate, exceed one-half of common stockholders' equity of the registrant and its consolidated subsidiaries as of the beginning of the fiscal year. For purposes of this test, only the proportionate share of the registrant and its other subsidiaries in the reserves for unpaid claims and claim adjustment expenses of 50%-or-less-owned equity investees taken in the aggregate after intercompany eliminations shall be taken into account. Article 12—Form and Content of Schedules (17 CFR 210).
  • [46 FR 54335, Nov. 2, 1981, as amended at 47 FR 29837, July 9, 1982; 49 FR 47598, Dec. 6, 1984; 59 FR 65637, Dec. 20, 1994; 74 FR 18615, Apr. 23, 2009; 83 FR 50203, Oct. 4, 2018]

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