Insurance Accounting Insurance Accounting
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Insurance Accounting and Financial Reporting Update duration insurance contracts issued by insurance entities.1 The ASU focuses only on disclosures and does not change the existing U.S. GAAP accounting model for short-duration contracts. Key Provisions Under the ASU, insurance entities with short-duration insurance contracts must annually provide the following disclosures: ICP 12A: An Introduction to Insurance Accounting An Introduction to Insurance Accounting Basic-level Module A. Introduction This module assumes that the reader has an understanding of basic accounting con-cepts, along the lines normally included in an introductory accounting course at the university level. Rather than provide a basic primer on the subject of accounting, the Background on: Insurance Accounting III Special accounting rules also evolved for industries with a fiduciary responsibility to the public such as banks and insurance companies. To protect insurance company policyholders, states began to monitor solvency. As they did, a special insurance accounting system, known as statutory accounting principles, or SAP, developed.
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