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, International insurance issues“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.

FASB added an insurance contracts project to its own agenda in October 2009, and FASB and IASB began discussing the insurance contracts project together in 2009, officials say.

IASB published an exposure draft in July. Comments are due Tuesday, and public discussions will be held in December.

FASB published a draft in September. Comments on that draft are due in December, and public discussions will be held in December.

IASB expects to publish an insurance contracts IFRS in June 2011.

FASB “will determine its next steps after considering the input received on its September 2010 Discussion Paper,” officials say.

- Allison Bell