{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/50/#25-recognition","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":"944-50","subtopic_title":"Policyholder Dividends","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Participating Contracts","paragraphs":[{"citation":"944-50-25-1","para":"25-1","html":"
For participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3, policyholder dividends shall be accrued.
","snippet":"For participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3, policyholder dividends shall be accrued.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2e37d5b087bdb5c172cc94ac9982d76e0f250ca1bdbd9713bd88605a99aa98d6","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"citation":"944-50-25-2","para":"25-2","html":"
This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. Limitations may exist on the amount of net income from participating insurance contracts of a life insurance entity that may be distributed to stockholders. In that circumstance, the policyholders' share of net income on those contracts that cannot be distributed to stockholders shall be recognized by both:
  1. a
    Excluding that share from stockholders' equity by a charge to operations
  2. b
    Recognizing that share as a credit to a liability relating to participating policyholders' funds.
Dividends declared or paid to participating policyholders shall reduce the liability recognized in (b); dividends declared or paid in excess of the liability shall be charged to operations.
","snippet":"This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. Limitations may exist on the amount of net income from participa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:836aa8378e30bc317a792474468fe25848acf4217f28d4ea9105bb55f0d5d154","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"citation":"944-50-25-3","para":"25-3","html":"
This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. For life insurance entities for which there are no net income restrictions and that use life insurance dividend scales unrelated to actual net income, policyholder dividends shall be accrued over the premium-paying periods of the contracts. Paragraph 944-740-25-1 states that, although payment is not required, a dividend recognized under this paragraph is considered a planned contractual benefit in computing generally accepted accounting principle (GAAP) liabilities, it may be necessary to identify the amount of this dividend to calculate deferred income taxes in those cases in which there is a question as to whether the dividend provision in the liabilities, together with the dividends paid or declared, may exceed the amount of dividends otherwise deductible for federal income tax purposes.
","snippet":"This guidance applies to participating contracts other than those long-duration participating life insurance contracts identified in paragraph 944-20-15-3. For life insurance entities for which there are no net income re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ff8857a26f620721370bbeb4cc422fcc5ed43dc8221ad50eb3a8b1aa160f9362","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5f1c6c51d8443d1eec1da0dd46425b12cd44aaac55f577dac8c825717b2a7dd6","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"block":"Long-Duration Contracts","heading":"Certain Long-Duration Participating Life Insurance Contracts","paragraphs":[{"citation":"944-50-25-4","para":"25-4","html":"
For long-duration participating life insurance contracts that meet the criteria in paragraph 944-20-15-3, annual policyholder dividends shall be expensed.
","snippet":"For long-duration participating life insurance contracts that meet the criteria in paragraph 944-20-15-3, annual policyholder dividends shall be expensed.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:247d4c451b6b1edd7dc7272797c7dc0d15079ad9ec2a86d9cba30a56067aad2f","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},{"citation":"944-50-25-5","para":"25-5","html":"
See paragraphs 944-40-25-30 and
944-40-35-22 through 35-23
for guidance on accounting for terminal dividends as part of the liability for future policyholder benefits.
","snippet":"See paragraphs 944-40-25-30 and 944-40-35-22 through 35-23 for guidance on accounting for terminal dividends as part of the liability for future policyholder benefits.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3c1c09e3f05661f1c857d0adf100b9ea1aac7a0dd07041832d7fd9c6d8c54dc2","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d0b3ea740fbc712b9ec3159624ac94dacddbe7a8defd8e7336e60a0cc5dab251","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7960f30980e611c8db457e0d8cb09b24d6c40efdd9e02ab8045e59ae2d0deb6","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7960f30980e611c8db457e0d8cb09b24d6c40efdd9e02ab8045e59ae2d0deb6","downloaded_from":"2026-09-10T02:17:29.887Z","last_downloaded_at":"2026-09-10T02:17:29.887Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479841","source_sha256":"4a9d4c688c3cce3174288164c3f93dc0d4cf46ccedf6749e6cae0dcc4d3662ce"}}