In a decision that signals a convergence plan that’s falling apart at the seams, the Financial Accounting Standards Board has decided to scale back its efforts with the International Accounting Standards Board on insurance — one of four priority projects the boards have been working for many years.
"In February, the FASB voted not to continue with a comprehensive project on insurance contracts," said FASB spokesperson Christine Klimek. "The FASB also decided not to postpone its deliberations until the IASB issues its final standard on insurance contracts."
Instead, "the FASB decided to focus on making targeted improvements to existing U.S. GAAP. For short-duration contracts, the board decided to limit the targeted improvements to enhancing disclosures. For long-duration contracts, the board concluded that decisions reached by the IASB in its 2013 exposure draft, Insurance Contracts, should be considered when contemplating improvements to existing U.S. GAAP."