EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
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Overview
ASC 944 guidance limits insurance companies’ deferrable acquisition costs to costs directly related to the successful acquisition of insurance contracts. Insurance companies need to capture and analyze information to identify costs that meet the definition of acquisition costs. Our Technical Line describes the guidance for deferred acquisition costs and includes questions and interpretive responses to help companies apply the guidance.