General guidelines and detailed procedures of customary accounting practice that are established and interpreted by the Financial Accounting Standards Board (FASB). FASB was formed in 1973. These accounting principles are used by business firms outside of the insurance industry, as well as by health and life insurance companies.
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These principles have substantial authoritative support for use in the insurance business. They are intended to produce financial results consistent with those of other industries and to assure consistency in financial reporting.