The American Institute of CPAs has issued Technical Practice Aids with information to help insurance entities with their accounting.
The documents includes helpful information for insurance entities initially applying the guidance in the Financial Accounting Standards Board’s Accounting Standards Update 2010-26, Financial Services—Insurance (Topic 944): Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts (a consensus of the FASB Emerging Issues Task Force), for year-end 2012.
TIS section 6300.39, Cumulative Effect of Change in Accounting Principle and Accounting Standards Update No. 2010-26, discusses items to consider when evaluating the direct effects of retrospective application of ASU No. 2010-26. Meanwhile, TIS section 6300.40, Deferrable Commissions and Bonuses under Accounting Standards Update No. 2010-26, discusses whether all commissions and bonuses are deferrable under the guidance in FASB ASU 2010-26.
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