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Deferred Acquisition Costs
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Deferred Acquisition Costs
In insurance, an expense to a customer that an insurance company initially pays, but recoups the funds from the customer gradually over the life of the insurance policy or other contract.


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8 million which included a $540,000 write off of deferred acquisition costs related to the cancelled Narrowstep acquisition.
The AICPA staff, helped by industry experts, released a set of technical questions and answers (Q&As) on financial accounting and reporting issues related to Statement of Position 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts.
The AICPA Accounting Standards Executive Committee (AcSEC) issued Statement of Position (SOP) 05-1, Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts, effective for replacements occurring in fiscal years beginning after December 15, 2006.
 
 
 
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