{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/80/#35-subsequent-measurement","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":"944-80","subtopic_title":"Separate Accounts","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Overall","paragraphs":[{"citation":"944-80-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D7118-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Investments in separate accounts shall be </span></span><span class=\"sfragment\" id=\"sfr_097D72B0-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">reported </span></span><span class=\"sfragment\" id=\"sfr_097D73F7-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">at <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>fair value</span></a> </span></span><span class=\"sfragment\" id=\"sfr_097D7536-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">except for <a href=\"/glossary/s/#separate-account\" class=\"term\" title=\"A separate investment account established and maintained by an insurance entity under relevant state insurance law to which funds have been allocated for certain contracts of the insurance entity or similar accounts used for foreign originated products. The term separate accounts includes separate accounts and subaccounts or investment divisions of separate accounts.\"><span>separate account</span></a> contracts with guaranteed investment returns. </span></span><span class=\"sfragment\" id=\"sfr_097D7679-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For those separate accounts, the related assets shall be reported in accordance with paragraph <a href=\"/asc/944/80/#944-80-25-4\" class=\"xref\">944-80-25-4</a>. </span></span></div></div>","snippet":"Investments in separate accounts shall be reported at fair value except for separate account contracts with guaranteed investment returns. For those separate accounts, the related assets shall be reported in accordance w…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:65bd33486e1321dcdccfbb6c4855cd5a8ebffb39a4360eab15b378d51f965e85","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D77D7-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The portion of separate account assets representing contract holder funds recognized under paragraph <a href=\"/asc/944/80/#944-80-25-3\" class=\"xref\">944-80-25-3</a> shall be </span></span><span class=\"sfragment\" id=\"sfr_097D790E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">measured subsequently at fair value. </span></span></div></div>","snippet":"The portion of separate account assets representing contract holder funds recognized under paragraph 944-80-25-3 shall be measured subsequently at fair value.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e9e7437ca58095acdd2b10a463af6546aa59f853a493122da41814b4a63f3811","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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href=\"/asc/944/80/#944-80-40-1\" class=\"xref\">944-80-40-1</a> states that assets transferred from the <a href=\"/glossary/g/#general-account\" class=\"term\" title=\"All operations of an insurance entity that are not reported in the separate account(s).\"><span>general account</span></a> to a separate account shall be recognized at fair value to the extent of the third-party contract holders' proportionate interests in the separate account if the <a href=\"/glossary/s/#separate-account-arrangement\" class=\"term\" title=\"An arrangement under which all or a portion of a contract holder's funds is allocated to a specific separate account maintained by the insurance entity.\"><span>separate account arrangement</span></a> meets the criteria in paragraph <a href=\"/asc/944/80/#944-80-25-2\" class=\"xref\">944-80-25-2</a>. </span></span><span class=\"sfragment\" id=\"sfr_097D7B8C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">That paragraph states that any resulting gain related to the third-party contract holders' proportionate interest shall be recognized immediately in earnings of the general account of the insurance entity provided that the risks and rewards of ownership have been transferred to contract holders using the fair value of the asset at the date of the contract holders' assumption of risks and rewards. </span></span></div></div>","snippet":"Paragraph 944-80-40-1 states that assets transferred from the general account to a separate account shall be recognized at fair value to the extent of the third-party contract holders' proportionate interests in the sepa…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21d74d88cfabed3985f0b31cb1cfaae84cc67569b62bb1f3977510f6edfad5ec","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-4","para":"35-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2014-09/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2014-09</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2014-09.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fdb69ac751e4094e6a6609824c348601766bdfe904d1c65f08ea2ccf42e6f0ef","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-5","para":"35-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D7CD5-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A guarantee of the asset's value or minimum rate of return or a commitment to repurchase the asset would not transfer the risks of ownership, and no gain shall be recognized. </span></span></div></div>","snippet":"A guarantee of the asset's value or minimum rate of return or a commitment to repurchase the asset would not transfer the risks of ownership, and no gain shall be recognized.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9ffadce1b541e6540282129f4d3af8b09ff011454368ce480f05ea4301f6fbed","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-6","para":"35-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D7E00-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the separate account arrangement does not meet the criteria in paragraph <a href=\"/asc/944/80/#944-80-25-2\" class=\"xref\">944-80-25-2</a>, the transfer shall have no financial reporting effect; that is, general account classification and carrying amounts shall be retained. </span></span></div></div>","snippet":"If the separate account arrangement does not meet the criteria in paragraph 944-80-25-2, the transfer shall have no financial reporting effect; that is, general account classification and carrying amounts shall be retain…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf7a8fa2121e85dfd24da3c676e2fbd1c4a36ee76a010a882ed10119b591b9b2","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-7","para":"35-7","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D7F2F-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The insurance entity shall recognize an impairment loss on an asset transferred from the general account to a separate account not meeting the criteria in paragraph <a href=\"/asc/944/80/#944-80-25-2\" class=\"xref\">944-80-25-2</a> if the terms of the arrangement with the contract holder are such that the insurance entity will not be able to recover the asset's carrying value. </span></span></div></div>","snippet":"The insurance entity shall recognize an impairment loss on an asset transferred from the general account to a separate account not meeting the criteria in paragraph 944-80-25-2 if the terms of the arrangement with the co…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b17315f987f61616387916137d610d385ffff8f7dd06381b057df4a8ef8fec46","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-8","para":"35-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D8060-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The insurance entity shall recognize an impairment loss on its proportionate interest in a separate account arrangement meeting the criteria in paragraph <a href=\"/asc/944/80/#944-80-25-2\" class=\"xref\">944-80-25-2</a> in a situation where the current fair value of the insurance entity's proportionate interest in the separate account assets is less than its <a href=\"/glossary/c/#carrying-amount\" class=\"term\" title=\"The amount of an item as displayed in the financial statements.\"><span>carrying amount</span></a>. </span></span></div></div>","snippet":"The insurance entity shall recognize an impairment loss on its proportionate interest in a separate account arrangement meeting the criteria in paragraph 944-80-25-2 in a situation where the current fair value of the ins…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f133f65fcbc22cd46bcf10a8abb1fb7e7727be0d5e2912df8e8ff88d585d90aa","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-9","para":"35-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D8198-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If third-party contract holders' proportionate interests in the separate account are subsequently increased, or the insurance entity otherwise reduces its proportionate interest in the separate account arrangement that meets the criteria in paragraph <a href=\"/asc/944/80/#944-80-25-2\" class=\"xref\">944-80-25-2</a>, the reduction in the insurance entity's proportionate interest may result in additional gain. </span></span></div></div>","snippet":"If third-party contract holders' proportionate interests in the separate account are subsequently increased, or the insurance entity otherwise reduces its proportionate interest in the separate account arrangement that m…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac05275965d69a3ab0275d0fdc7c318e38d96468ebd7ddcdb2347603df3caaf9","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}},{"citation":"944-80-35-10","para":"35-10","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_097D82BA-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If an insurance entity's proportionate interest subsequently increases as a result of transactions executed at fair value, the increase is considered a purchase from the contract holder and shall be recognized at fair value. </span></span></div></div>","snippet":"If an insurance entity's proportionate interest subsequently increases as a result of transactions executed at fair value, the increase is considered a purchase from the contract holder and shall be recognized at fair va…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:37b771d72465dffaade94f37a6049315172cdf9c22886ec62f968ce71604e7a1","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479273","source_sha256":"6b6ebb6506cb69cb6295a57695f7ee0af4ed757c0c6bb5c36bc28996ad9f19cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:af12f0e641706abfb05716ac83f2ff5fe37321d059f233eff434b0149185f396","downloaded_from":"2026-09-10T02:18:25.338Z","last_downloaded_at":"2026-09-10T02:18:25.338Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not 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