July 2014
At KPMG, we are dedicated to providing our clients with insights on today’s critical business issues. To help keep you up to date, we’re pleased to share with you recent studies, white papers, articles, and multimedia content published by KPMG.
SPECIAL ALERT – KEY INSURANCE ACCOUNTING DEVELOPMENTS
In its July meeting, the Board fine-tuned the non-participating contracts model by confirming which rate would be used for subsequent measurement of the contractual service margin, and considering the requirements for changes in the accounting policy to present the effects of changes in discount rates in profit or loss or in other comprehensive income.
The Board’s last critical challenge remains the accounting for participating contracts. The Board directed the staff to further explore an effective yield approach for determining the interest expense to be presented in profit or loss, to be discussed at future meetings. Once the Board has addressed participating contracts, it will consider whether any of its decisions would impact non-participating contracts.
Read more
Location