ASU 2018-12 — Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts

The amendments in this Update make targeted improvements to the existing recognition, measurement, presentation, and disclosure requirements for long-duration contracts issued by an insurance entity. Specifically, the amendments in this Update (1) improve the timeliness of recognizing changes in the liability for future policy benefits and modify the rate used to discount future cash flows, (2) simplify and improve the accounting for certain market-based options or guarantees associated with deposit (or account balance) contracts, (3) simplify the amortization of deferred acquisition costs, and (4) improve the effectiveness of the required disclosures.

This Update is the final version of Proposed Accounting Standards Update 2016-330 - Financial Services - Insurance (Topic 944) - Targeted Improvements to the Accounting for Long-Duration Contracts, which has been deleted.

Issued: August 15, 2018