# ASC 944-30-30: Financial Services—Insurance — Acquisition Costs — 30 Initial Measurement

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/944/30/#30-initial-measurement)

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.

Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure.

Source downloaded (UTC): 2026-09-10T02:16:05.010Z to 2026-09-10T02:16:05.010Z

Record version: sha256:71886c5eff2a4dcf476705a7ee69748c871be15c7a03ce455ad36b3304b4f7be

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 944-30-30: 30 Initial Measurement

[Read section](https://asc.understandingaccounting.org/asc/944/30/#30-initial-measurement)

SEC content: no

### Short-Duration Contracts

##### [944-30-30-1](https://asc.understandingaccounting.org/asc/944/30/#944-30-30-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:16:05.010Z to 2026-09-10T02:16:05.010Z

Record version: sha256:7e61f8bfe560ab3e175ee3689b7d6dcb09f5c86e1ddc71740c55dfe95bf517fb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Paragraph [944-30-35-2](https://asc.understandingaccounting.org/asc/944/30/#944-30-35-2) states that, if [acquisition costs](https://asc.understandingaccounting.org/glossary/a/#acquisition-costs "Costs that are related directly to the successful acquisition of new or renewal insurance contracts.") for short-duration contracts are determined based on a percentage relationship of costs incurred to premiums from contracts issued or renewed for a specified period, the percentage relationship and the period used, once determined, shall be applied to applicable unearned premiums throughout the period of the contracts.

### Long-Duration Contracts

##### [944-30-30-2](https://asc.understandingaccounting.org/asc/944/30/#944-30-30-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:16:05.010Z to 2026-09-10T02:16:05.010Z

Record version: sha256:b871e93a0befc0fc8d8cf5d5ab4aed7c8665e7576a9eee1d80ce02519c97b398

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Incurred [acquisition costs](https://asc.understandingaccounting.org/glossary/a/#acquisition-costs "Costs that are related directly to the successful acquisition of new or renewal insurance contracts.") for long-duration contracts shall be used in determining acquisition costs to be capitalized. Acquisition costs, including future contract renewal costs, shall not be capitalized or amortized before the incurrence of those costs.