This special edition of IFRS Newsletter: Insurance (PDF 1.5MB) highlights the results of the FASB-only discussion during 20 February - 6 March 2013 on the joint insurance contracts project. In addition, it provides the current status of the project and an expected timeline for completion.
The FASB made decisions on the margin:
- the accretion of interest on the margin;
- the treatment of changes in estimated interest crediting and accretion rates for asset-affected cash flows;
- election of the fair value option;
- segregated assets related to direct performance-linked insurance contracts;
- the presentation of insurance contracts in the statement of financial position and statement of comprehensive income contracts; and
- a number of sweep issues.