Exposure Draft of Insurance SOP Deadline Shortened

A new Statement of Position (SOP) covering demutualization and formations of mutual insurance holding companies has a shorter deadline than previously announced of 60 rather than 90 days.

The SOP was issued on April 3 by the AICPA’s Accounting Standards Executive Committee, and is formally titled Accounting by Insurance Enterprises [1] for Demutualizations and Formations of Mutual Insurance Holding Companies and for Certain Long-Duration Participating Contracts.

The shorter time period is attributed to the significant activity related to this area, according to Deloitte & Touche [2] partner Ed Morrissey, who serves as the Task Force chair. Comments are due on or before June 5.