Deloitte comments on the US Financial Accounting Standards Board (FASB) vote to take a new course on insurance contracts

Francesco Nagari, Deloitte global IFRS insurance lead partner, said:

“The FASB’s decision to significantly reduce its plans on changing US insurance accounting standards was not unexpected. It is now clear that both the FASB and the International Accounting Standards Board (IASB) will be moving in different directions on this important chapter of their rulebooks. This scenario could have repercussions on global insurance participants. There has been a strong demand across numerous stakeholders for converged global guidance between the FASB and IASB. Unfortunately, the prospect of this in the near future is a remote possibility. Insurance accounting standards are now moving towards a polarised situation with a different accounting model under US GAAP facing the markets adopting IFRS and leaving investors to develop a potentially complex reconciliation in between.”

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Notes to editors

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