Accounting Groups: Insurance Project on Track

The International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) say they still hope to complete work on a major insurance accounting rules project by June 2011.

IASB, London, and FASB, Norwalk, Conn., mention the insurance contracts project in a “convergence” update.

For IASB, which shapes the accounting rules in many markets outside the United States, and FASB, which sets the U.S. Generally Accepted Accounting Principles (GAAP) for companies, “convergence” refers to efforts to bring International Financial Reporting Standards (IFRS) and U.S. GAAP standards closer together.

The insurance convergence project is a priority project, IASB and FASB officials say.

IASB now lacks specific standards for insurance contracts.

IASB has been working on standards since 2007, and FASB has been talking about working together with IASB since that year.