# ASC 944-80-40: Financial Services—Insurance — Separate Accounts — 40 Derecognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/944/80/#40-derecognition)

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): 2026-09-10T02:18:27.891Z to 2026-09-10T02:18:27.891Z

Record version: sha256:4210e6f794219439970da8bf6dea945eed03556119610b12ea09142cbe9b07fb

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 944-80-40: 40 Derecognition

[Read section](https://asc.understandingaccounting.org/asc/944/80/#40-derecognition)

SEC content: no

#### Transfers to Separate Accounts

##### [944-80-40-1](https://asc.understandingaccounting.org/asc/944/80/#944-80-40-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:18:27.891Z to 2026-09-10T02:18:27.891Z

Record version: sha256:8a73110dfa71a7f902b1c406f618f766e5505902473e4cbe9804acde8e9a6faa

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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](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.") shall be recognized 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.") 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). 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.

##### [944-80-40-2](https://asc.understandingaccounting.org/asc/944/80/#944-80-40-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:18:27.891Z to 2026-09-10T02:18:27.891Z

Record version: sha256:565c3decd15665a379a7b8f3b5284551070482e1f37f04a9cd31f857f73a4cc9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


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.

##### [944-80-40-3](https://asc.understandingaccounting.org/asc/944/80/#944-80-40-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T02:18:27.891Z to 2026-09-10T02:18:27.891Z

Record version: sha256:9859a8e69e01cea96aa205a9ba908f6b92b717b3f9fa527206ea74895e0c07fa

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.