Navigating the new standards for bond accounting Wipfli

When you have confidence in your numbers, you can make bold moves that drive growth and innovation within your organization. This method is specifically designed for contracts with direct participation, such as participating life insurance. Our Standards are developed by our two standard-setting boards, the International Accounting Standards Board (IASB) and International Sustainability Standards Board (ISSB). We can also help you navigate the other financial challenges that come with running your own business like payroll setup and filing your small business taxes. Understanding these principles is important for correctly implementing statutory insurance accounting accounting at your business. Whether your business requires a traditional audit or accounting and reporting advisory services, Deloitte & Touche LLP’s Audit & Assurance practice works to deliver more than a static snapshot of the past.

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This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. This publication contains general information only and Deloitte is not, by means of this publication, Insurance Accounting rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this publication.

Insurance contracts

The guidance also extends to reinsurance arrangements—both assumed and purchased—highlighting its comprehensive reach within the industry. Although complex and costly to implement, it will bring greater transparency and comparability to the insurance industry. Insurers who successfully adapt to this new standard will reap significant benefits in terms of the quality of their financial information and investor confidence. This new standard is bringing profound changes to the way insurance companies are organized. Insurers will have to modify their information systems, adapt their data collection processes and train their staff to meet the new accounting requirements.

• In accordance with the standards of the National Registry of CPE Sponsors, CPE credits will be granted based on a 50-minute hour.
• By combining financial expertise with investigative skills, forensic accountants help ensure transparency, accuracy, and integrity in the insurance claims process.
• IFRS Accounting Standards are, in effect, a global accounting language—companies in more than 140 jurisdictions are required to use them when reporting on their financial health.
• This framework not only standardizes accounting practices but also ensures that insurers can confidently meet regulatory requirements.
• Most statutory financial reporting service providers and bond accounting firms that specialize in serving insurers are informed of and implementing changes needed to comply with these new standards.
• This post will walk you through everything you need to know about ASC 944, including how HubiFi’s automated solutions can keep your business compliant with ease.

Common Types of Insurance Claims Requiring Forensic Accounting

The IFRS Foundation is a not-for-profit, public interest organisation established to develop high-quality, understandable, enforceable and globally accepted accounting and sustainability disclosure standards. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients.

• An insurance company’s annual financial statement is a lengthy and detailed document that shows all aspects of its business.
• Unearned premiums are the portion of the premium that corresponds to the unexpired part of the policy period.
• Instead of putting your insurance business’s livelihood at risk due to incorrect accounting, allow FinancePal to be your resource for all things insurance accounting.
• Let’s dive into some of the fundamental factors of insurance accounting that make it unique from other industries.
• By understanding these elements—transition guidance through LDTI updates, acquisition cost handling, and revenue recognition principles—you’re well-equipped to navigate ASC 944’s complexities effectively.
• By integrating seamlessly with existing systems, HubiFi enables companies to streamline their processes, ensuring they remain compliant without the usual administrative burdens.
• IFRS 17 replaces IFRS 4 and sets out principles for the recognition, measurement, presentation and disclosure of insurance contracts within the scope of IFRS 17.

Using the Standards

The term statutory accounting denotes the fact that SAP embodies practices prescribed or permitted by state law. Understanding and implementing ASC 944 is crucial for insurance companies aiming to maintain transparency and accuracy in their financial reporting. This framework not only standardizes accounting practices but also ensures that insurers can confidently meet regulatory requirements. With its focus on long-duration contracts, acquisition costs, and revenue recognition, ASC 944 provides a comprehensive guide to navigating the complexities of insurance accounting.

Simplify Your Business Finances

Forensic accountants apply investigative techniques and financial expertise to analyze claims, identify discrepancies, and ensure settlements are based on accurate data. Their work extends beyond standard accounting practices, they reconstruct financial records, detect fraudulent activities, and provide expert insights that can influence legal and financial decisions. Forensic accountants play a critical role in the insurance claims process by applying financial expertise and investigative techniques to assess damages, prevent fraud, and ensure fair settlements. Their work goes beyond basic accounting—they analyze financial records, reconstruct financial events, and provide clear, data-backed insights to support claim evaluations. Whether working on behalf of insurers to verify claims or assisting policyholders in proving losses, forensic accountants help ensure that all financial aspects of a claim are thoroughly examined and accurately presented.

In addition to knowing which deductions apply to you, you should also be aware of the deadlines for filing and making payments on your business income. These materials were downloaded from PwC’s Viewpoint (viewpoint.pwc.com) under license.

Automated Revenue Recognition

Profits arise from insurance company operations (underwriting results) and investment results. Long-duration contracts are a cornerstone component addressed by ASC 944 due to their complexity and long-term nature. In accordance with the standards of the National Registry of CPE Sponsors, CPE credits will be granted based on a 50-minute hour. Compliance with IFRS 18 requires significant investment in terms of human and technological resources. Insurers need to put in place new systems capable of handling more complex calculations and producing more detailed information. The objective of the amendments is to assist entities implementing the Standard, while not unduly disrupting implementation or diminishing the usefulness of the information contra asset account provided by applying IFRS 17.