# ASC 944-60-50: Financial Services—Insurance — Premium Deficiency and Loss Recognition — 50 Disclosure

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/944/60/#50-disclosure)

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## ASC 944-60-50: 50 Disclosure

[Read section](https://asc.understandingaccounting.org/asc/944/60/#50-disclosure)

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### Short-Duration Contracts

##### [944-60-50-1](https://asc.understandingaccounting.org/asc/944/60/#944-60-50-1)

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An insurance entity shall disclose in its financial statements whether it considers anticipated investment income in determining if a premium deficiency relating to short-duration contracts exists.

### Long-Duration Contracts

##### [944-60-50-2](https://asc.understandingaccounting.org/asc/944/60/#944-60-50-2)

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For annual reporting periods, and to the extent required by Topic 270 on interim reporting, an insurance entity shall disclose the following:

1.  a
    
    The amount of a liability that is established as a result of a premium deficiency and loss recognition testing determined in accordance with paragraphs
    
    [944-60-25-7 through 25-9](https://asc.understandingaccounting.org/asc/944/60/#944-60-25-7)
    
    and a description of the factors that led to the establishment of the liability
    
2.  b
    
    Information about the methodology used when performing premium deficiency testing in accordance with paragraphs
    
    [944-60-25-7 through 25-9](https://asc.understandingaccounting.org/asc/944/60/#944-60-25-7)
    
3.  c
    
    Whether the entity considered anticipated investment income when performing premium deficiency testing in accordance with paragraphs
    
    [944-60-25-7 through 25-9](https://asc.understandingaccounting.org/asc/944/60/#944-60-25-7)
    
    and, if so, what that assumption was.
    

Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance:

[270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)For interim and annual reporting periods, an insurance entity shall disclose the following:

1.  a
    
    The amount of a liability that is established as a result of a premium deficiency and loss recognition testing determined in accordance with paragraphs
    
    [944-60-25-7 through 25-9](https://asc.understandingaccounting.org/asc/944/60/#944-60-25-7)
    
    and a description of the factors that led to the establishment of the liability
    
2.  b
    
    Information about the methodology used when performing premium deficiency testing in accordance with paragraphs
    
    [944-60-25-7 through 25-9](https://asc.understandingaccounting.org/asc/944/60/#944-60-25-7)
    
3.  c
    
    Whether the entity considered anticipated investment income when performing premium deficiency testing in accordance with paragraphs
    
    [944-60-25-7 through 25-9](https://asc.understandingaccounting.org/asc/944/60/#944-60-25-7)
    
    and, if so, what that assumption was.