Identify the issue according to FASB using IRAC method for the following Question and Answer from a book keeper. $1.(14)$ Can you give us a copy of the new insurance policies? Did you only purchase them for one year this time.

Yes, the discount was not worth paying the cash up front for those anymore, so we are just doing one year at a time now. It also allows us more flexibility in shopping around for the best rates as the business grows.