{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/30/#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":"944","topic_title":"Financial Services—Insurance","subtopic":"944-30","subtopic_title":"Acquisition Costs","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"944-30-05-1","para":"05-1","html":"
This Subtopic provides guidance to insurance entities on accounting for and financial reporting of acquisition costs including related considerations for internal replacement transactions. The guidance in this Subtopic is presented in the following five Subsections:
  1. a
    General
  2. b
    Short-Duration Contracts
  3. c
    Long-Duration Contracts
  4. d
    Internal Replacement Transactions
  5. e
    Reinsurance Contracts.
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The Short-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving short-duration contracts.
","snippet":"The Short-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving short-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5a714b3ce8dafb0a26d06fbd8eec27a15536bd0639bbf578dea98cab11dfbb69","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9194d9c13886c9c7327ef2cda8ec5affaf565e24690d4557b469ce1ccfb30ef2","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}},{"block":"Long-Duration Contracts","heading":null,"paragraphs":[{"citation":"944-30-05-3","para":"05-3","html":"
The Long-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving long-duration contracts.
","snippet":"The Long-Duration Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving long-duration contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8449a676e2d34f4e9d8289e006879be1429633a0fa1e9d9c15fa15def47cd57f","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:39124f20d5bb90f6358597b43e2c90199341a41f523cc3a06289e0a66ad5ea79","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}},{"block":"Internal Replacement Transactions","heading":null,"paragraphs":[{"citation":"944-30-05-4","para":"05-4","html":"
The Internal Replacement Transactions Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of unamortized acquisition costs in the event of an internal replacement transaction.
","snippet":"The Internal Replacement Transactions Subsections of this Subtopic provide guidance to insurance entities on accounting for and financial reporting of unamortized acquisition costs in the event of an internal replacement…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06d53ab2fe7cc4842d0cca865afc1cd5bfdaa7807c084359b11014d245966f5e","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}},{"citation":"944-30-05-5","para":"05-5","html":"
Policyholders often purchase universal life-type contracts as replacements for other insurance contracts issued by the same entity (sometimes referred to as internal replacement transactions). In those cases, the policyholder often uses the cash surrender value of the previous contract to pay an initial lump-sum premium for the new contract.
","snippet":"Policyholders often purchase universal life-type contracts as replacements for other insurance contracts issued by the same entity (sometimes referred to as internal replacement transactions). In those cases, the policyh…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a7aec4a99fc955a1fb126c94e889b46e2c741bf7978ffa99400bd9cef1a3a288","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ed348edf8cb412303d137bce5cd7a231562c44f90d4c5513c0860abf721301bf","downloaded_from":"2026-09-10T02:15:52.993Z","last_downloaded_at":"2026-09-10T02:15:52.993Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479682","source_sha256":"5464595aa4e094b4127db2d986dcd62f32aaf980fade62a34724e7dceb72a4fd"}},{"block":"Reinsurance Contracts","heading":null,"paragraphs":[{"citation":"944-30-05-6","para":"05-6","html":"
The Reinsurance Contracts Subsections of this Subtopic provide insurance entities guidance on accounting for and financial reporting of acquisition costs involving reinsurance contracts.
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