The Chairman of the Federal Accounting Standards Advisory Board (FASAB), Tom Allen, announced today that the FASAB is seeking input on the exposure draft of a proposed Statement of Federal Financial Accounting Standards (SFFAS) entitled Insurance Programs. “The Board is seeking to improve federal financial reporting and to better inform readers about the operating performance of insurance programs and the risk of loss to the federal government from adverse events,” according to Chairman Allen.
To provide concise, meaningful, and transparent information regarding insurance program costs and liabilities, the exposure draft proposes to establish three categories of insurance and related guidance: exchange transaction insurance programs other than life insurance, nonexchange transaction insurance programs, and life insurance programs. The proposal would rescind existing standards for insurance and guarantee programs in SFFAS 5, Accounting for Liabilities of The Federal Government, paragraphs 97-121.
Respondents are encouraged to provide the reasons for their positions. The Board requests exposure draft comments by March 29, 2016. Both the exposure draft in PDF format and the specific questions raised in Microsoft Word format are available at the FASAB website http://fasab.gov/board-activities/documents-for-comment/exposure-drafts-and-documents-for-comment/.