{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/30/#40-derecognition","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":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":"Internal Replacement Transactions","heading":"Contracts That Are Substantially Changed","paragraphs":[{"citation":"944-30-40-1","para":"40-1","html":"An internal replacement that is determined under paragraph 944-30-35-37 to result in a replacement contract that is substantially changed from the replaced contract shall be accounted for as an extinguishment of the replaced contract. Unamortized deferred acquisition costs, unearned revenue liabilities, and deferred sales inducement assets from the replaced contract in an internal replacement transaction that results in a substantially changed contract shall not be deferred in connection with the replacement contract. If the replaced contract was acquired in a purchase business combination, any present value of future profits shall be accounted for in a similar manner. Other balances associated with the replaced contract, such as any liability for future policy benefits or market risk benefits, shall be accounted for based on an extinguishment of the replaced contract and issuance of a new contract. Acquisition costs related to the replacement contract shall be evaluated for deferral in accordance with Section 944-30-25.