Description: FASB's Statement of Financial Accounting Standards No. 97 contains wide-sweeping changes to the preparation of GAAP financials for insurance companies. The focus of this article will be on the ramifications of the interest rate FASB has decided to use to amortize deferred acquisition costs.

Description: This article describes that some companies are ‘approaching the problem of how to accommodate Universal Life in GAAP statements by using a simple method which produces not unreasonable results and waiting for consensus on appropriate methodology to develop. This describes so of the methodology currently in use.