FASB Discusses Accounting for Long-Duration Contracts
At its February 24th Board meeting, the Financial Accounting Standards Board (“FASB”) reviewed its project on targeted improvements to the accounting for long-duration contracts. During discussions regarding the presentation of market risk benefits, the FASB decided that the carrying amount should be reported on a separate line in an entity’s financial statement. The accounting board also agreed that the change in fair value, with the exception of the portion concerning changes in an entity’s own credit risk, should be a separate line item in the statement of operations.
More on the decisions from the FASB’s February 24th meeting can be found on the FASB Web site.