New Disclosures for Insurance Contracts
On May 21, 2015, the Financial Accounting Standards board (FASB) issued an accounting standards update (ASU), 2015-09, Financial Services—Insurance (Topic 944): Disclosures about Short-Duration Contracts, which will require insurers to provide additional disclosures to increase transparency of management's significant estimates and improve financial statement comparability. The ASU will cover short-duration insurance contracts issued by insurance entities. FASB anticipates the ASU will better enable financial statement users to understand the amount and uncertainty of cash flows arising from insurance liabilities, the nature and extent of risks arising for short-duration insurance contracts and the timing of cash flows arising for insurance liabilities. The ASU is effective for public business entities for annual reporting periods beginning after December 15, 2015, and interim reporting periods within annual reporting periods beginning after December 15, 2016. All other entities have been granted an additional year for implementation. Early adoption is permitted.