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Invitation to Comment on Insurance Accounting

Thursday, August 24, 2006

The FASB issued an Invitation to Comment on insurance accounting to request information from constituents about: 1) The definition of insurance contract and insurance risk; 2) Whether insurance and reinsurance contracts should be bifurcated into insurance and deposit components; 3) If so, which insurance and reinsurance contracts would be bifurcated? and 4) How would insurance and reinsurance contracts be bifurcated? The specific issues that are expected to be addressed in comment letters can be found on the FASB website under Project Activities/Project Updates & Technical Plan/Insurance Risk Transfer. The Financial Reporting Committee of IMA submitted a comment letter to FASB to express its views on the issues addressed in the invitation to comment.