# ASC 944-80-35: Financial Services—Insurance — Separate Accounts — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/944/80/#35-subsequent-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): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:10019b5d8023c100126c011228c2dfa64857f14f242d509c9375ad04a8b389ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 944-80-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/944/80/#35-subsequent-measurement) SEC content: no #### Overall ##### [944-80-35-1](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:65bd33486e1321dcdccfbb6c4855cd5a8ebffb39a4360eab15b378d51f965e85 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments in separate accounts shall be reported at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") except for [separate account](https://asc.understandingaccounting.org/glossary/s/#separate-account "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.") contracts with guaranteed investment returns. For those separate accounts, the related assets shall be reported in accordance with paragraph [944-80-25-4](https://asc.understandingaccounting.org/asc/944/80/#944-80-25-4). ##### [944-80-35-2](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:e9e7437ca58095acdd2b10a463af6546aa59f853a493122da41814b4a63f3811 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The portion of separate account assets representing contract holder funds recognized under paragraph [944-80-25-3](https://asc.understandingaccounting.org/asc/944/80/#944-80-25-3) shall be measured subsequently at fair value. #### Transfers to Separate Accounts ##### [944-80-35-3](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:21d74d88cfabed3985f0b31cb1cfaae84cc67569b62bb1f3977510f6edfad5ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [944-80-40-1](https://asc.understandingaccounting.org/asc/944/80/#944-80-40-1) states that assets transferred from the [general account](https://asc.understandingaccounting.org/glossary/g/#general-account "All operations of an insurance entity that are not reported in the separate account(s).") 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 [separate account arrangement](https://asc.understandingaccounting.org/glossary/s/#separate-account-arrangement "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.") meets the criteria in paragraph [944-80-25-2](https://asc.understandingaccounting.org/asc/944/80/#944-80-25-2). 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. ##### [944-80-35-4](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:fdb69ac751e4094e6a6609824c348601766bdfe904d1c65f08ea2ccf42e6f0ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2014-09](https://asc.understandingaccounting.org/updates/asu-2014-09/). ##### [944-80-35-5](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:9ffadce1b541e6540282129f4d3af8b09ff011454368ce480f05ea4301f6fbed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [944-80-35-6](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:cf7a8fa2121e85dfd24da3c676e2fbd1c4a36ee76a010a882ed10119b591b9b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the separate account arrangement does not meet the criteria in paragraph [944-80-25-2](https://asc.understandingaccounting.org/asc/944/80/#944-80-25-2), the transfer shall have no financial reporting effect; that is, general account classification and carrying amounts shall be retained. ##### [944-80-35-7](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:b17315f987f61616387916137d610d385ffff8f7dd06381b057df4a8ef8fec46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/944/80/#944-80-25-2) 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. ##### [944-80-35-8](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:f133f65fcbc22cd46bcf10a8abb1fb7e7727be0d5e2912df8e8ff88d585d90aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](https://asc.understandingaccounting.org/asc/944/80/#944-80-25-2) in a situation where the current fair value of the insurance entity's proportionate interest in the separate account assets is less than its [carrying amount](https://asc.understandingaccounting.org/glossary/c/#carrying-amount "The amount of an item as displayed in the financial statements."). ##### [944-80-35-9](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:ac05275965d69a3ab0275d0fdc7c318e38d96468ebd7ddcdb2347603df3caaf9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [944-80-25-2](https://asc.understandingaccounting.org/asc/944/80/#944-80-25-2), the reduction in the insurance entity's proportionate interest may result in additional gain. ##### [944-80-35-10](https://asc.understandingaccounting.org/asc/944/80/#944-80-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:18:25.338Z to 2026-09-10T02:18:25.338Z Record version: sha256:37b771d72465dffaade94f37a6049315172cdf9c22886ec62f968ce71604e7a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.