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Article: FASB Seeks Constituent Views on the Bifurcation of Insurance and Reinsurance Contracts; Board Invites Comments on Project to Improve Financial Reporting for Insurance Accounting.
- Article from:
- Business Wire
- Article date:
- May 26, 2006
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NORWALK, Conn. -- As part of a broader initiative to improve financial reporting for insurance accounting, the FASB today announced that it is seeking constituent comment and perspective on the potential bifurcation of insurance and reinsurance contracts into insurance components and financing components.
Today's Invitation to Comment (ITC) reflects the Board's concern about a possible lack of transparency in the financial statements of both policyholders and (re)insurance companies relating to the depiction of insurance risk associated with contracts that include terms or features that significantly limit the actual amount of risk transferred. Such contracts are ...