Posted on August 28, 2013 by Heather J. Wietzel
Discussion of changes to insurance contract accounting has been going on for over a decade. With its newest proposal, the Financial Accounting Standards Board is asking for comments on an updated proposal for standards that likely would be effective on January 1, 2018.
That sure does seem very far away.
I think that extended time frame – and the number of times this topic has come up and then been relegated to the back burner – has contributed to a lower profile for this most recent update. Continue reading
Filed under: FASB/IASB, Important ideas, Investor Relations, Messaging | Leave a comment »
Posted on August 8, 2011 by Heather J. Wietzel
This past Monday, I had the privilege of attending the National Investor Relations Institute’s (NIRI) annual liaison meeting with Financial Accounting Standards Board (FASB) board members and staff. FASB and NIRI organize the session each year to offer investor relations practitioners a chance to “discuss standards from the investor communications perspective.”
The Session was Excellent
FASB allotted three hours for the liaison meeting, giving us plenty of time for the formal agenda as well as informal conversation and Q&A. About 15 people attended from FASB, including two board members and staff members with a variety of responsibilities. The FASB group shared updates on their initiatives and projects. Among the subjects covered were convergence to international accounting standards (IFRS), the disclosure framework project, revenue recognition, leases and financial instruments.
Those of us attending with NIRI gave feedback to FASB about the challenges we face communicating with investors. Our comments generally focused on how the accounting framework helps or hinders our ability to present historical and prospective information so that investors can make informed investment decisions or recommendations.
Specific to the Insurance Industry
We had the opportunity during the session to spend a few minutes learning more about the work FASB is doing in conjunction with the IASB on proposed changes to the accounting for insurance contracts. (See the Update on Insurance Contracts – a Joint Project of the IASB and FASB – for full details of the project.)
I believe the discussion of the insurance contracts project was positive. It provided an opportunity to highlight – from the investor relations perspective – some of the potential problems the proposed changes might create for insurance-sector investor communications.
The FASB group was very interested in our input and acknowledged the high volume of investor feedback they have received about the insurance contract proposal. They stressed how open they remain to feedback on the topic. Continue reading
Filed under: FASB/IASB, Important ideas, Investor Relations | Tagged: Accounting | 2 Comments »