{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/944/80/#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":"944-80","subtopic_title":"Separate Accounts","section":{"number":"40","label":"40 Derecognition","anchor":"40-derecognition","is_sec":false,"groups":[{"block":null,"heading":"Transfers to Separate Accounts","paragraphs":[{"citation":"944-80-40-1","para":"40-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_098718D3-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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 <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> shall be recognized 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> 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_09871A35-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">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":"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 separate account if the separate accou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8a73110dfa71a7f902b1c406f618f766e5505902473e4cbe9804acde8e9a6faa","downloaded_from":"2026-09-10T02:18:27.891Z","last_downloaded_at":"2026-09-10T02:18:27.891Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479249","source_sha256":"7534cd4cdcd033f86a62e32c531553ebb69ced9ad01ca81cadab5b6bb64972d2"}},{"citation":"944-80-40-2","para":"40-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_09871B37-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the transferred asset is subsequently sold by the separate account, any remaining unrecognized gain related to the insurance entity's proportionate interest shall be recognized immediately in the earnings of the general account of the insurance entity. </span></span></div></div>","snippet":"If the transferred asset is subsequently sold by the separate account, any remaining unrecognized gain related to the insurance entity's proportionate interest shall be recognized immediately in the earnings of the gener…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:565c3decd15665a379a7b8f3b5284551070482e1f37f04a9cd31f857f73a4cc9","downloaded_from":"2026-09-10T02:18:27.891Z","last_downloaded_at":"2026-09-10T02:18:27.891Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479249","source_sha256":"7534cd4cdcd033f86a62e32c531553ebb69ced9ad01ca81cadab5b6bb64972d2"}},{"citation":"944-80-40-3","para":"40-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_09871C2E-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":"sha256:9859a8e69e01cea96aa205a9ba908f6b92b717b3f9fa527206ea74895e0c07fa","downloaded_from":"2026-09-10T02:18:27.891Z","last_downloaded_at":"2026-09-10T02:18:27.891Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479249","source_sha256":"7534cd4cdcd033f86a62e32c531553ebb69ced9ad01ca81cadab5b6bb64972d2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:50a0e080b8cb59424f85004cb9a1c5679e31a898040a1e2fe3e652c2e9381365","downloaded_from":"2026-09-10T02:18:27.891Z","last_downloaded_at":"2026-09-10T02:18:27.891Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not 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