Announcement: SOA releases April 2022 Exam PA passing candidate numbers.
Announcement: SOA congratulates the new ASAs and CERAs for June 2022.

Financial Reporting for Insurance Contracts Under Possible Future International Accounting Standards

Research Projects – Life Insurance


The world of financial reporting continues to change as it is expected that the current U.S. financial reporting framework (GAAP) will converge to an international framework. The International Accounting Standards Board (IASB) issued an exposure draft and the U.S. Financial Accounting Standards Board (FASB) issued a discussion paper on a proposal to revise the reporting of liabilities for insurance contracts under a future international framework. The Society of Actuaries Financial Reporting Section is please to make available the following study performed by Steven Barclay, Sam Gutterman and Randy Tillis of PricewaterhouseCoopers examining the financial reporting effect of the proposals on U.S contracts.

Companies, consultants and software firms were recruited to model the impact of the exposure drafts on various product lines including term, participating whole life, universal life, deferred variable annuities, single premium immediate annuities, long term care, and supplemental health. In addition to examining the cash flows and income statements of the proposed international financial reporting framework to that of current US GAAP standards, the research analyzed alternatives scenarios in those cases where IASB and FASB have not settled on a set of final positions. The project also identified areas in which implementation guidance and further clarification of the principles are needed.


Financial Reporting for Insurance Contracts under Possible Future International Accounting Standards

Thank You

The Financial Reporting Section Council would like to thank the companies that provided modeling assistance and those individuals who served on the Project Oversight Group.

Questions Or Comments?

If you have comments or questions, please send an email to