FASB ISSUES INVITATION TO COMMENT

The Financial Accounting Standards Board (“FASB”) has issued an Invitation to Comment on a proposed project to develop a comprehensive standard on accounting for insurance (including reinsurance) contracts.  The proposed project would be a joint undertaking with the International Accounting Standards Board (“IASB”) that would replace all existing American Generally Accepted Accounting Principles (“GAAP”) and international financial reporting standards for insurance contracts.

Concurrently, the IASB is working on a project with regard to accounting for insurance contracts, recently launching a public consultation–by publishing its preliminary views in a discussion paper.  Although the “FASB has not discussed, deliberated, or reached any tentative conclusions about the IASB’s preliminary views,” it has included the IASB’s discussion paper as Appendix C to its Invitation to Comment.  For your review, we have attached the FASB’s Invitation to Comment.  Also, to view the IASB’s discussion paper, please click here.

The deadline to submit comments to the FASB is November 16, 2007.  The FASB intends to hold an Insurance Forum in March or April 2008 to discuss the comment letters received.

Should you have any questions or comments regarding this information, please feel free to contact this office.