Topic: FASB’s revised guidance on “Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts”
Recording date: Wednesday, December 8, 2010 2:00 pm
Duration: 50 minutes
Description: FASB issued revised guidance related to composition of deferred acquisition costs in response to noted diversity within the industry regarding costs recognized as deferrable acquisition costs. The recently-issued accounting update on Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts will significantly change the types of costs eligible for capitalization for some insurance entities. Amongst other changes, the new guidance states that capitalized costs must now be based on successful sales efforts. Costs such as rent, underwriting software, overhead expenses from acquisition activities must now be expensed, and advertising costs can only be capitalized as deferred acquisition costs to the extent that direct-response advertising criteria have been met.
Here is a link to a copy of the presentation from the webinar http://www.jlco.com/pdf/JLCODPACpresentationDec8.pdf
A recording of the webinar is also available and may be seen by following the link below. https://jlco.webex.com/jlco/lsr.php?AT=pb&SP=EC&rID=19652577&rKey=1907b239819e55ef