Handbook: Long-duration contracts
Handbooks | November 2026
Latest edition: Our updated guide for long-duration contracts, with Q&As, interpretive guidance and examples.
Our in-depth guide on ASU 2018-12, with new and updated interpretations and examples based on our experience with companies accounting for long-duration contracts.
Applicability
- Insurance entities that issue long-duration contracts
- Not applicable to policyholders of long-duration contracts or non-insurance entities
Relevant dates
- Effective immediately
Targeted – but not simple – improvements
In August 2018, the FASB issued ASU 2018-12, Targeted Improvements to the Accounting for Long-Duration Contracts, the culmination of a decade-long insurance accounting project. This standard changes how entities recognize, measure, present and disclose long-duration contracts. It is intended to improve, simplify and enhance the financial reporting of long-duration contracts – including providing users with more relevant information and a more current view of expected future cash flows.
Our objective is to help you achieve a thorough understanding of this standard. Although companies have now implemented this standard, accounting and reporting issues and positions continue to evolve. We hope to help those companies tackle post-implementation challenges.
Report contents
- Liability for future policy benefits
- Market risk benefits
- Deferred acquisition costs
- Other accounting items
- Enhanced disclosure requirements
- Effective dates and transition
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