Kyle: I heard you recently left public accounting for a new job.
Matt: After 60- to 70-hour weeks, I decided to accept a fantastic offer from one of our clients.
Kyle: What company did you decide to go with?
Matt: American Insurance Company. I will be dealing with the accounting of insurance contracts.
Kyle: Sounds like a very technical area of accounting.
Matt: It sure is. I’m currently trying to learn the difference between cost recovery and the deposit method of accounting for various insurance contracts.

Required: 

Provide specific Codification references that explain the two accounting models that Matt is investigating.