Observations on Emergence of Earnings under US GAAP Targeted Improvements
ByFrançois Dauphin, and William Hines
1 April 2019
Observations on Emergence of Earnings under US GAAP Targeted Improvements
The changes to the measurement and reporting of long duration insurance contracts will have a profound impact on the emergence and volatility of earnings under US GAAP. This paper illustrates the potential impacts of Accounting Standards Update 2018-12, Targeted Improvements for Long-Duration Contracts relative to current US GAAP accounting with respect to four blocks of business: level term insurance, single premium immediate annuities, long-term care insurance and universal life insurance.