Illustrative disclosures for insurers adopting ASU 2018-12
The KPMG LDTI Illustrative Disclosures Guide presents one possible format for financial statements of a life insurer applying the requirements of ASU 2018-12
On August 15, 2018, the FASB issued ASU 2018-12 to improve financial reporting for insurers that issue long-duration contracts such as life insurance and annuities. The objective of ASU 2018-12 is to improve, simplify, and enhance the financial reporting of long-duration contracts, by providing financial statement users with useful information in a timely and transparent manner. Insurers will need to disclose quantitative information in rollforwards for the liability for future policy benefits, policyholder account balances, MRBs, separate account liabilities and DAC – as well as information about the significant inputs, judgments, assumptions and methods used in measurement.
Our LDTI Illustrative Disclosures Guide provides one format for financial statements of a life insurer applying the requirements of ASU 2018-12. A helpful resource, the guide presents example disclosures for the initial application of ASU 2018-12 for annual financial statements as of December 31, 2023.
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Illustrative disclosures for insurers adopting ASU 2018-12
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