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Handbook: Long-duration contracts

Handbooks | April 2021

Latest edition: Our updated guide for long-duration contracts, with Q&As, interpretive guidance and examples.

In-depth guidance on, and interpretations of, ASU 2018-12. This latest edition includes new and updated interpretations and examples based on our experience with companies implementing ASU 2018-12.


  • Insurance entities that issue long-duration contracts
  • Not applicable to policyholders of long-duration contracts or non-insurance entities

Relevant dates

Effective dateSEC filers, except smaller reporting companiesAll other entities

Annual periods – Fiscal years beginning after       

December 15, 2022

December 15, 2024

Interim periods – In fiscal years beginning after 

December 15, 2022

December 15, 2025

Early adoption allowed?

Yes. If early adoption is elected, the transition date is either the beginning of the prior period presented or the beginning of the earliest period presented.

Key impacts

  • Q&As that answer common questions we are encountering in practice
  • Examples to explain key concepts
  • Changes from legacy US GAAP

Related content

  • Liability for future policy benefits
  • Market risk benefits
  • Deferred acquisition costs
  • Other accounting items
  • Enhanced disclosure requirements
  • Effective dates and transition

Download the document:

Long-duration contracts

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Meet our team

Image of Jennifer Austin
Jennifer Austin
Partner, Dept. of Professional Practice, KPMG US
Image of Darcie Garza
Darcie Garza
Managing Director, Dept. of Professional Practice, KPMG US

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