The FASB has decided to change the future direction of its insurance contracts project, and will consider targeted improvements to current US GAAP. It will also limit the project's scope to insurance entities, although contracts written by non-insurers may be added back as the project progresses.
These decisions are likely to significantly limit convergence between the IASB's and the FASB's insurance contracts projects.
Meanwhile, the IASB's tentative decision on a 2018 effective date for its financial instruments standard may make it easier for insurers to adopt the new insurance contracts IFRS at the same time.
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