FASB issues enhanced disclosure guidance for insurer claim liabilities

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "FASB issues enhanced disclosure guidance for insurer claim liabilities"

Transcription

1 No. US June 18, 2015 What s inside: Background... 1 Summary of key provisions... 1 Detail of key provisions... 2 Scope... 3 Rollforward interim disclosure requirements... 3 Claims development table and related information... 3 Historical average annual percentage claims payout.. 8 Health insurance considerations... 9 Significant changes in methodologies and assumptions Discounting Effective date and transition Implementation challenges Appendix Claims development table and related reconciliation disclosures FASB issues enhanced disclosure guidance for insurer claim liabilities At a glance On May 21, the FASB issued Accounting Standards Update (ASU) , Disclosures about Short-Duration Contracts, addressing enhanced disclosure requirements for insurers relating to short-duration insurance contract claims and the unpaid claims liability rollforward for long and short-duration contracts. The disclosures are intended to provide users of financial statements with more transparent information about an insurance entity s initial claim estimates and subsequent adjustments to those estimates, the methodologies and judgments used to estimate claims, and the timing, frequency, and severity of claims. The new disclosures may require the accumulation and reporting of new and different groupings of claims data by insurers from what is currently captured for U.S. statutory and other reporting purposes. Background.1 As a result of feedback received on the FASB s 2013 exposure draft on insurance contracts (the 2013 ED), which would have fundamentally changed insurers accounting for short-duration contracts, the FASB decided to instead enhance disclosures for shortduration contracts issued by insurance entities a move supported by many in the industry as a reasonable substitute to wholesale changes to the accounting model..2 The new disclosures are intended to increase the transparency of significant estimates made in measuring claim liabilities and to provide users with more information to facilitate their analysis of the nature, amount, timing, and uncertainty of claims cash flows. Summary of key provisions.3 ASU amends ASC 944, Financial Services Insurance, to require significant new disclosures relating to claim liabilities. The new disclosures are listed below in summary, followed by a more detailed description of each new provision. Year-to-date interim period claim liability rollforwards and related qualitative information for the liability for unpaid claims and claim adjustment expenses are now required, whereas existing U.S. GAAP has only an annual disclosure requirement. The rollforward is a general requirement applicable to all types of insurance contracts that have an unpaid claims liability, including long-duration as well as short-duration contracts. National Professional Services Group CFOdirect Network In depth 1

2 Disaggregated claims development tables and related information for shortduration contracts, including: Tabular presentation of undiscounted, incurred and paid claims and allocated claim adjustment expenses by accident year, on a net basis after reinsurance, for up to 10 years; The sum of incurred but not reported (IBNR) claims liabilities plus expected development on reported claims included within the incurred claims development tables, for each accident year, for the most recent reporting period presented. A description of the estimation methodologies for these components, which in many cases may be estimated on a combined basis, is also required; Cumulative claim frequency information for each accident year, for the most recent reporting period presented (unless impractical) and how frequency is measured; and Reconciliation of the claims development tables to the balance sheet claim liabilities, with separate disclosure of ceded reinsurance, for the most recent reporting period presented. Historical average annual percentage payout of incurred claims (claims duration) for short-duration contracts (except for health insurance claims, for which separate disclosures apply), based on the disaggregated information in the paid claims development tables, net of reinsurance. For health insurance claims, interim and annual disclosure of IBNR plus the expected development on reported claims is required. Information about significant changes in estimation methodologies and assumptions made in calculating the claim liability and claim adjustment expenses for short-duration contracts, including the reasons for any changes and the financial statements impacts. The effect discounting short-duration contracts had on the financial statements, on a disaggregated basis, including the aggregate amount of discount deducted from the claim liability, the amount of interest recognized during the period, and the line item in which interest accretion is classified..4 The new disclosures will be effective for U.S. GAAP reporters for annual reporting periods beginning after December 15, 2015 (i.e., 2016 for calendar year end entities), and interim reporting periods thereafter. Non-public entities will have a one year deferral (i.e., 2017 for calendar year end entities). Early application is permitted. Detail of key provisions.5 The new disclosures require claims development tables, which in some cases may be required to present up to ten years of claims development information. Only the most recent reporting period s claims development information is a required part of the basic financial statements. The claims development information for all periods preceding the most recent reporting period and the historical claims payout percentage disclosure will be considered required supplementary information (RSI). Under U.S. auditing standards, RSI is not a part of the basic financial statements, and as a result, is not addressed by the auditor s opinion on the basic financial statements. However, the auditor does need to apply certain limited procedures to RSI. National Professional Services Group CFOdirect Network In depth 2

3 Scope.6 The new disclosure guidance is applicable to certain types of insurance contracts written by insurance entities, as defined in ASC 944. With the exception of the rollforward guidance, the additional disclosures pertain to short-duration insurance contracts only. Examples of short-duration contracts that would be subject to the new guidance include most property and liability insurance contracts as well as certain types of accident and health insurance. The accounting classification of a contract as shortversus long-duration, rather than the settlement period or tail of the claim liability, will dictate whether the new claims development and related disclosures are applicable..7 Life insurers may write certain types of coverages, such as group life, group longterm disability, and group short-term disability products that are classified as shortduration, which are therefore subject to all of the new disclosure requirements. In contrast, for contracts that qualify as long-duration contracts, such as certain types of long-term disability and long-term care policies that are expected to remain in force for an extended period, the new claims development table and discounting disclosures described in paragraphs.10 through.39 are not mandatory. This is true even though the unpaid claims liabilities for these contracts may be outstanding for a long period of time, similar to short-duration claim liabilities. However, to the extent that such contracts have significant unpaid claims activity, the rollforward disclosures described in paragraphs.8 and.9 would be applicable. Examples of contracts currently subject to the annual unpaid claims liability rollforward guidance, and that will be subject to the new interim period rollforward guidance, include all types of short-duration insurance contracts as well as certain long-duration contracts with significant unpaid claims activity, such as certain longterm disability and long-term care insurance contracts. Financial guarantee contracts follow a unique accounting model, and are not considered short-duration. As such, they appear to be outside the scope of most of the standard s provisions, with the exception of the rollforward requirement. Rollforward interim disclosure requirements.8 A tabular rollforward of the liability for unpaid claims and claim adjustment expenses is currently required by U.S. GAAP for annual reporting periods for both short and long-duration insurance policies. The new guidance expands the rollforward requirement to year-to-date interim periods..9 The new guidance continues to require incurred and paid claims information to be reported separately, with further detail regarding the claim activity relating to the current accident year (year-to-date amounts) and development relating to prior accident years. Consistent with current requirements, any reinsurance recoverable is presented as a reconciling item to the beginning and ending balances. Claims development table and related information Claims development table.10 The new guidance includes an illustrative example of a claims development table, which is provided as part of the Appendix to this In depth. The claims development table is required to be presented: National Professional Services Group CFOdirect Network In depth 3

4 annually, as of the date of latest statement of financial position; on a disaggregated basis (as a result, multiple tables will usually be required, as discussed beginning in paragraph.14 of this In depth); on an undiscounted basis; by accident year for the number of years for which claims are typically outstanding (but need not exceed 10 years); net of reinsurance; and including tabular amounts of incurred claims and allocated claim adjustment expenses separate from paid claims and claim adjustment expenses..11 In addition, for the most recent reporting period presented, total net outstanding claims for accident years not separately presented in the table must be disclosed (e.g., older than 10 years if claim settlement exceeds 10 years). The SEC already requires property/casualty insurance entity registrants to present a loss reserve development table. However, the SEC requirement differs in format and content. The table required by the SEC is presented on a consolidated basis whereas the new guidance requires a disaggregated basis. The 10-year table required by the SEC shows amounts by financial reporting year, while the FASB requires the amounts to be presented by accident year. In addition, the SEC table includes all unpaid claim liabilities, whereas the FASB table requires only the significant groupings. The SEC table also shows aggregate historical liability changes by financial statement date..12 All periods presented in the claims development table that precede the most current annual period presented are considered RSI. In the ASU s Background and Basis for Conclusions, the FASB notes that to best communicate claims development trends to users, all claims development years should be presented together. The new guidance does not prescribe a particular location for RSI. Options include presenting the RSI as a supplementary schedule outside of the basic financial statements (with only the current period information included in the notes to the financial statements) or within the notes to the financial statements, accompanied by a clear distinction of what is required supplementary information, such as labeling the RSI as unaudited. Reconciliation of claims development tables to aggregate unpaid claims liability.13 The claims development table information must be reconciled to the unpaid claims liabilities, as shown in the FASB s illustrative example included as part of the Appendix to this In depth. Reconciling items may include reinsurance recoverables (for each disaggregated grouping), unallocated claims adjustment expenses, discounting, other short-duration insurance contract disaggregation categories that are considered insignificant for individual table disclosure, and unpaid claims liabilities for contracts not classified as short-duration. The impact of foreign exchange translation may be another reconciling item to the extent the table is presented on a basis different from the balance sheet exchange rates, as described in more detail in paragraphs.28 and.29 below. National Professional Services Group CFOdirect Network In depth 4

5 Level of disaggregation.14 The disclosures are aimed at providing users of financial statements with information to allow them to understand the amount, timing, and uncertainty of cash flows arising from the liabilities. The new guidance requires that an entity aggregate or disaggregate the information so that useful information is not obscured by either the inclusion of a large amount of insignificant detail or the aggregation of items that have significantly different characteristics. Insurers should not aggregate amounts from different reportable segments..15 In determining the level of disaggregation at which to present the required claims development information, insurers should consider how their liabilities for unpaid claims and claim adjustment expenses have been presented for other purposes, including outside of the financial statements (e.g., Management s Discussion and Analysis (MD&A) in Annual Reports on Form 10-K, earnings releases, annual or statutory reports, supplementary disclosures of global loss triangles) and information reviewed by chief operating decision makers. Examples of categories for preparers to consider include type of coverage, geography, reportable segment, market or type of customer, and claim duration. Current U.S. statutory Annual Statement reporting for claims development (Schedule P) disaggregates claims development information at a line of business level by legal entity. There are over 20 statutory lines of business groupings in Schedule P. While this level of disaggregation may be appropriate for U.S. statutory disclosure purposes, higher aggregation may be more consistent with the stated FASB objective. Groupings of product lines disclosed by U.S. public insurers in Form 10-K filings and global loss triangles prepared by some insurers may also be appropriate starting points for consideration. For example, some insurers provide a more granular discussion than reportable segments in their MD&A, where they may discuss claims development based upon type of coverage, geography, or type of customer. This would be an indicator of the historical level of disaggregated information that management concluded would allow users of the financial statements to understand the amount, timing, and uncertainty of cash flows arising from these liabilities. Management should consider and be prepared to explain potential differences between the granularities of different disclosures of claims development information..16 Insurers need not include disclosures about claims development for insignificant categories of liabilities, but if omitted, these categories would be included in the claims development reconciliation. Judgment will be needed to assess what is insignificant in the context of the financial statements. Incurred but not reported claims and claim frequency disclosures.17 As an accompanying disclosure to the annual claims development tables, the insurer is required to disclose, for the most recent reporting period presented, for each accident year presented in the claims development tables: the sum of IBNR plus expected development on reported claims, (referred to herein as IBNR+ ); and cumulative claim frequency information, unless impracticable to do so. National Professional Services Group CFOdirect Network In depth 5

6 .18 Because insurers will likely have various methodologies for determining the IBNR+ and claim frequency information, potentially even within the same entity for different categories of claims development tables, a description of the methodologies used for determining these amounts is also required for each table. An explanation of significant changes in the methodologies used for determining both the IBNR+ amounts and claim frequency amounts is also required..19 The FASB originally proposed disclosure of claim counts, which is a required disclosure for most lines of business for state regulatory purposes, rather than claim frequency. However, concerns were raised that there is diversity in practice in the definition and computation of claim counts, that other claim frequency information might be more useful in some situations, and that there is a lack of availability of claim information for certain types of business, such as assumed reinsurance and residual markets. The FASB revised the guidance to require the disclosure of claim frequency information, which they view as a broader term, providing more disclosure options, and added an impracticability exception. Claim frequency is sometimes used by actuaries in a more narrow way, as a ratio that includes a numerator (such as claim counts) and a denominator (exposures, such as number of cars insured), which is one example of how claim frequency might be disclosed under the new guidance..20 Because differences will likely exist in how claim frequency is measured, required disclosure includes whether claim frequency is measured by claim event or individual claimant and how the insurer considers claims that do not result in a liability (e.g., those below a deductible). For example, a car accident with three claimants could be considered one loss event (i.e., a single claim count) or three (one for each claimant). Separately, an aggregate high deductible policy will have a large number of losses payable by the insured prior to reaching the insurer s attachment point. In such cases, some insurers may consider claims under the deductible to be claims, since they may develop into the insured layer over time, while other insurers may only consider claims in the insured layer as reported claims..21 Where impracticable to disclose claim frequency information, an entity is required to disclose this fact and the reason. Impracticable means that after making every reasonable effort to do so, an entity is unable to apply the requirement. The implementation guidance gives two examples of impracticable situations assumed reinsurance and participation in residual market pools, where an entity does not have access to claim frequency information. Claim frequency information is to be disclosed at the same level of disaggregation as the claims development table disclosures, which could prove challenging in certain situations. Where an entity chooses to disaggregate at a product level, it would be likely that the entity could define claim frequency. However where a category is based on geographical location, which may include both direct and assumed business, as well as various product lines, an entity may determine that obtaining the quantitative claim frequency information is impracticable..22 The FASB decided to require disclosure of IBNR plus expected development on reported claims rather than just pure IBNR. This decision was made to be consistent with U.S. statutory reporting requirements under Schedule P, which is commonly employed by users in their analysis of an insurer s claims development. The FASB s original objective in requiring the disclosure of claim counts and pure IBNR was to allow users to take that information, along with the incurred claim information in the claims development tables, in order to calculate the average severity of reported claims. National Professional Services Group CFOdirect Network In depth 6

7 While the FASB s original objective was to provide information to allow users to calculate average severity of reported claims, and to compare that information between insurers, this goal may not be achieved in practice. The IBNR+ amount will typically be derived by subtracting known case reserves from total incurred claim liabilities. However, known case reserves is not a defined accounting term in U.S. GAAP and thus insurers measure it differently. For example, claims adjusters may establish claims in dispute at a small dollar amount based on litigation concerns or to incentivize claim adjudication behavior, or, in other instances, may set known case reserves based on expected modes, probable minimums, or probable maximums. In addition, because the disclosure was changed from including claim count to claim frequency, the amount disclosed might be a percentage (e.g., number of claims per insured vehicle). Therefore, it may not be possible to calculate severity from the disclosed information. Acquisitions, dispositions, and other significant business modifications.23 The new guidance does not specifically address how the impact of acquisitions, disposals, commutations, spin-offs, retroactive reinsurance agreements, and other means to enter or exit business (collectively business modifications ) should be reflected in the claims development table disclosures. As a result, reporting entities have latitude to select a reasonable approach. Because the guidance is silent, there are alternatives available to insurers for reflecting acquisitions, dispositions, and similar business modifications in the claims development tables. We believe each insurer should (1) select the methodology that it believes will provide the most understandable information to users, considering its specific facts and circumstances, (2) apply a consistent approach for reflecting these modifications, and (3) disclose its chosen methodology..24 In some cases, business modifications can distort claims development for a user. For example, in a business combination, including the acquired business by accident year in subsequent years tables could make it appear that there is adverse development if the acquired business is material..25 One alternative for the claims development table for acquisitions would be to collapse the acquired entity amounts into a single column in the year of acquisition. In subsequent periods, the reporting entity could potentially show development on acquired claims in a separate table..26 Depending on materiality, another option could be to combine acquired company data with the acquiring company prospectively, accompanied by a qualitative explanation of the aberrations due to the combination. Any development for the existing business would also be qualitatively described separately..27 Similarly, to avoid the appearance of favorable development in periods subsequent to a disposition, an insurance entity might prefer to remove the amounts retrospectively as if they were not part of the exposure (i.e., restate the entire table), similar to what is required for U.S. statutory reporting purposes. If presented in this matter, we believe a separate disclosure should be provided in the year of the disposition that would show a table of the amounts removed. National Professional Services Group CFOdirect Network In depth 7

8 Additional record keeping requirements could arise due to differences between the new disclosure for U.S. GAAP purposes and that for U.S. statutory purposes. For example, for U.S. statutory reporting purposes in Schedule P, an acquired entity s data is combined with that of the acquirer retrospectively, such that prior years in the table are restated back to the inception of the acquired contracts. Effect of foreign exchange.28 The new guidance does not address the appropriate foreign exchange rate for translating foreign currency claim amounts relating to insurance contracts in the claims development table. Therefore, reporting entities have latitude to select a reasonable approach, but once selected, should apply that methodology on a consistent basis..29 In order to have a useful year by year comparison of claims development information, we believe the alternative selected should result in an apples to apples comparison for each accident year presented (i.e., the same foreign exchange rate should be used for each accident year). To accomplish this, a reporting entity might choose to translate the estimated claims in the table at the rate of exchange applicable at the end of each accident year, rather than at the current rate for all of the accident years. This means each accident year would have a different rate, requiring a reconciling item to the balance sheet amount. Under this method, the prior years disclosed amounts would be the same as those reported in previously issued financial statements. An alternative would be to reflect all amounts in the claims development table at the current period-end foreign exchange rate, which would eliminate the need for the reconciling item. However, this would result in recasting historical amounts such that they would differ from the amounts reported in previously issued financial statements. As insurance entities will have alternatives for reflecting translation of claim amounts in their claims development tables, they should consider how this calculation is currently performed for existing purposes (e.g., actuarial studies, statutory reporting), and also weigh the cost and benefits of alternative presentation approaches for increased user understandability. Historical average annual percentage claims payout.30 The new guidance includes a requirement to present the historical average annual percentage payout of claims as of the end of the most recent reporting period, at the same level of disaggregation as presented in the claims development tables. The average historical payout should be calculated on an accident year basis for each development year..31 As the calculation of the historical average is based on the historical paid claim information from the claims development tables, it is similarly considered RSI. Due to the very short duration of health insurance claim settlement period, health insurance claims are exempt from this requirement. National Professional Services Group CFOdirect Network In depth 8

9 .32 The guidance includes an example assuming one claims development table (homeowners insurance), so the example reflects the payout pattern in a single table. However, if there were multiple significant categories and thus multiple claims development tables, there would need to be a corresponding payout pattern table for each. Illustrated below is the average annual percentage payout of incurred claims disclosure, excerpted from ASC F. 1 Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Years Homeowners Insurance 33.8% 14.9% 8.5% 7.2% 6.6% 4.9% 5.4% 5.7% 2.7% 0.3%.33 The new guidance illustrates how an entity may calculate the payout percentages based on the information in the claims development tables. If, for example, an entity was calculating the percentage in year 3, it would divide the claims paid in Year 3 for each accident year (derived by subtracting the cumulative paid amounts in Year 2 from the cumulative paid amounts in Year 3 from the claims development table), by the most recently re-estimated incurred claims for each accident year, also taken from the claims development table. It would then average these percentages of claims paid for the third year of each accident year to arrive at the percentage included in the disclosure. The percentages in the above table do not add up to 100% because the percentages represent averages by accident year and because the illustration has a longer tail (i.e., timing between claim occurrence and claim payment dates) than 10 years. The FASB s 2013 ED had proposed that entities disclose information about the expected timing of future claim payments in various time bands. However, the FASB ultimately decided that the disclosure should instead be a historical summary of claim payments rather than forward looking. Users will need to understand that the payout pattern represents the historical pattern by accident year, which is not necessarily the pattern that might be expected going forward. The FASB observed that preparers may provide additional explanation about the information presented. Health insurance considerations.34 The claims development tables, IBNR+ and claim frequency disclosures are applicable to health insurance claims. As health insurance claims typically have shorter tails than short-duration policies written by property/casualty insurers, the claims development table disclosure for health claims will likely be less than the maximum requirement of 10 years..35 Based on the typical claim duration, the FASB decided to not require the historical average annual percentage payout of claims for health insurance claims. For health insurance claims, insurers are instead required to disclose IBNR+ in both interim and annual financial statements. In addition, in the interim and annual disclosure of the rollforward of the claim liability, health insurance claims are required to be disaggregated, whereas the rollforward guidance applicable to non-health insurance claims is silent on disaggregation. 1 The FASB material included in this work is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, and is reproduced with permission. National Professional Services Group CFOdirect Network In depth 9

10 Significant changes in methodologies and assumptions.36 There are a number of analytical techniques that are typically utilized in estimating the liability for unpaid claims. One or several techniques may be used for a liability grouping, and techniques may be changed over time based on new information..37 For the most recent annual reporting period, entities will be required to disclose information about significant changes in methodologies and assumptions used in calculating the liability for unpaid claims and claim adjustment expenses. This would include the reasons for the change and the effects on the financial statements. The guidance is not explicit as to whether the effects of the change need to be disclosed quantitatively or qualitatively. Although the disclosure of significant changes is required annually, to the extent there are significant changes in assumptions or methodologies during an interim period, existing U.S. GAAP relating to interim reporting would require disclosure during such periods as well. In addition, although not specifically required to be included in the claims development table disclosure, entities may find it helpful to disclose these changes with each of the tables to add context to movements in the incurred claims and allocated claim adjustment expenses at the disaggregated table level. Discounting.38 If a reporting entity discounts the liability for unpaid claims and claim adjustment expenses, current U.S. GAAP requires disclosure of the carrying amounts of the discounted liability for unpaid claims and claim adjustment expenses and the range of interest rates used to discount the liability. Under the new guidance, an entity is also required to disclose the effects of discounting on the comparative annual financial statements, including the aggregate amount of discount deducted from the claim liability, the amount of interest recognized during the period, and the line item in which interest accretion is classified..39 The disclosures are required to be presented on a disaggregated basis, using the same guidance noted in paragraphs.14 and.15. We believe there may be circumstances where the disaggregation categories used for the discounting disclosure may differ from those used for the claims development tables. For example, if workers compensation liabilities are discounted, this might be an appropriate level of disaggregation for the discounting disclosure, even if workers compensation claims are presented at a different grouping level for purposes of the claims development table. Effective date and transition.40 The enhanced disclosures will be effective for public business entities for annual reporting periods beginning after December 15, 2015 (i.e., 2016 for calendar year end entities), and interim reporting periods thereafter. Non-public business entities will have a one year deferral (i.e., 2017 for calendar year end entities). Early application is permitted..41 Upon transition, the claims development table need not exceed five years if presenting prior years information is deemed impractical. An additional year should be added to the disclosure in each subsequent year of financial reporting, but need not exceed ten years. National Professional Services Group CFOdirect Network In depth 10

11 .42 The disclosures are required to be applied retrospectively, except for those disclosures that require application only to the current period (e.g., information about significant changes in estimation methodologies and assumptions made in calculating the claim liability for short-duration contracts). Insurers will need to make every reasonable effort to obtain claim data for all periods, as the need not exceed five-year transition provision is available only as a practicability exception. The level of effort required will vary by insurer, depending on its specific facts and circumstances. These would include the level of disaggregation deemed appropriate for U.S. GAAP claims development tables versus U.S. statutory and other reporting, the materiality of foreign operations (for which Schedule P is not required) and the extent that processes and systems exist to capture the data. Implementation challenges.43 Although some of the information required is based on current U.S. statutory reporting requirements, the level of disaggregation and presentation is different. Further, from a timing standpoint, U.S. GAAP reporting often precedes U.S. statutory reporting requirements, which will require the preparation of this information in a compressed timeframe. Similarly, global insurers may not have prepared this level of reporting for their foreign operations. Additional challenges could arise in presenting the impacts of acquisitions, dispositions, and the impact of foreign exchange rates. Processes and systems will likely need to be updated to capture the data at a new level of detail and categorization. Entities should not underestimate the work needed to compile these disclosures, and the related changes that may be needed to systems and controls. In addition, associated internal controls may need to be updated and tested. National Professional Services Group CFOdirect Network In depth 11

12 Appendix Claims development table and related reconciliation disclosures The following example disclosure illustrates how an insurer may reflect the claims development tables and related reconciliation in the year of adoption, assuming it was practicable to obtain claims data information for all years presented. RSI may be presented as a supplementary schedule outside of the basic financial statements, with only the current period information included in the notes to the financial statements. Alternatively as illustrated below, RSI may be presented within the notes to the financial statements, accompanied by a clear distinction of what is required supplementary information. The claims development table information shown below was excerpted from ASC E. 2 It illustrates the disclosure an insurance entity with one major short-duration product line would make. To clearly delineate the RSI, we labeled all prior years as unaudited. Homeowners' Insurance in thousands Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance As of December 31, 20Y6 Accident Year 20X7 20X8 20X9 20Y0 For the Years Ended December 31, 20Y1 20Y2 20Y3 20Y4 20Y5 20Y6 Total of Incurred-but- Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims 20X7 $10,000 $ 9,900 $ 9,700 $ 9,800 $ 9,750 $ 9,750 $ 9,600 $ 9,650 $ 9,575 $ 9,550 $ X8 10,950 11,000 10,500 10,750 10,850 10,600 10,250 10,150 10, X9 12,000 11,750 11,500 10,900 10,900 10,850 10,750 10, Y0 12,250 12,500 12,550 12,400 12,200 12,150 12, Y1 12,300 12,500 12,650 12,750 12,800 12, Y2 12,800 12,900 12,750 12,700 12,700 1, Y3 13,000 13,250 13,100 13,150 1, Y4 13,150 13,250 13,300 2, Y5 13,500 13,250 3, Y6 13,750 5, Total $ 121,300 Homeowners' Insurance in thousands Accident Year 20X7 20X8 Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance 20X9 20Y0 For the Years Ended December 31, 20Y1 20Y2 20Y3 20Y4 20Y5 20X7 $ 3,000 $ 5,000 $ 5,500 $ 6,000 $ 6,800 $ 7,500 $ 8,500 $ 9,000 $ 9,050 $ 9,075 20X8 3,500 5,750 6,500 7,500 7,750 8,250 8,500 9,000 9,500 20X9 3,750 6,000 6,500 7,500 7,900 8,250 8,950 9,700 20Y0 3,750 6,250 7,250 7, ,700 9,950 20Y1 4,250 5,500 6,750 8, ,250 20Y2 4,125 5,250 7,000 8,000 9,000 20Y3 4,500 5,750 7,250 7,750 20Y4 4,600 6,000 6,950 20Y5 4,750 6,125 20Y6 4,850 20Y6 Total $82,150 All outstanding liabilities before 20X7, net of reinsurance 1,400 Liabilities for claims and claim adjustment expenses, net of reinsurance $40,550 2 The FASB material included in this work is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, and is reproduced with permission. National Professional Services Group CFOdirect Network In depth 12

13 The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses for the most recent reporting period presented in the balance sheet would appear as follows. Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses December 31, 20Y6 Net outstanding liabilities Homeowners' insurance $ 40,550 Other short-duration insurance lines 1,976 Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance 42,526 Reinsurance recoverable on unpaid claims Homeowners' insurance 13,880 Other insurance lines 283 Total reinsurance recoverable on unpaid claims 14,163 Insurance lines other than short-duration 3,315 Unallocated claims adjustment expenses 2,420 Other 10 5,745 Total gross liability for unpaid claims and claim adjustment expense $ 62,434 Questions? PwC clients who have questions about this In depth should contact their engagement partner. Engagement teams who have questions should contact the Financial Instruments team in the National Professional Services Group ( ). Authored by: Christopher Irwin Partner Phone: Sal Volpe Senior Manager Phone: Mary Saslow Managing Director Phone: PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. PwC refers to the United States member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see for further details. This content is for general information purposes only, and should not be used as a substitute for consultation with professional advisors. To access additional content on financial reporting issues, visit PwC s online resource for financial executives.

GAAP accounting update

GAAP accounting update GAAP accounting update December 17, 2015 Baker Tilly refers to Baker Tilly Virchow Krause, LLP, an independently owned and managed member of Baker Tilly International. Agenda 1) Introduction 2) ASU 2015-16:

More information

IASB Agenda Ref 16A. FASB Memo No. 140A. Issue Date September 11, 2015. Meeting Date September 23, 2015. Assistant Director

IASB Agenda Ref 16A. FASB Memo No. 140A. Issue Date September 11, 2015. Meeting Date September 23, 2015. Assistant Director Memo IASB Agenda Ref 16A FASB Memo No. 140A Issue Date September 11, 2015 Meeting Date September 23, 2015 Contact(s) Alex Casas Author / Project Lead Peter Proestakes Assistant Director Project Topic Insurance

More information

Financial Issue 2010-7 Instruments, Structured

Financial Issue 2010-7 Instruments, Structured Financial Issue 2010-7 Instruments, Structured October 8, 2010 Products and Real Estate (FSR) Capital Markets Accounting Developments Advisory Issue 2010-8 December 13, 2010 Analysis of ASU 2010-20 Disclosures

More information

top issues An annual report

top issues An annual report top issues An annual report Volume 7 2015 Insurance modernization Developments in insurance contracts accounting and reserving The insurance industry in 2015 Developments in insurance contracts accounting

More information

Going concern. FASB defines management s going concern assessment and disclosure responsibilities. At a glance. Background

Going concern. FASB defines management s going concern assessment and disclosure responsibilities. At a glance. Background No. US2014-07 September 23, 2014 What s inside: Background... 1 Key provisions... 2 Disclosure threshold: Substantial doubt... 2 Consideration of management s plans... 4 Required disclosures... 6 What

More information

Revenue from contracts with customers The standard is final A comprehensive look at the new revenue model

Revenue from contracts with customers The standard is final A comprehensive look at the new revenue model Revenue from contracts with customers The standard is final A comprehensive look at the new revenue model No. US2014-01 (supplement) July 7, 2015 What s inside: Overview... 1 Distinct performance obligations...

More information

Opening the black box

Opening the black box Demystifying IFRS 4 Phase 2 1 Opening the black box Demystifying IFRS 4 Phase 2 KPMG International kpmg.com Foreword The new accounting standard for insurers will represent a significant change for many

More information

RE: Disclosure Requirements for Short Duration Insurance Contracts

RE: Disclosure Requirements for Short Duration Insurance Contracts INS-14 November 21, 2014 Mr. Russell G. Golden Chairman Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk, Connecticut 06856-5116 RE: Disclosure Requirements for Short Duration Insurance

More information

1. The purpose of this paper is to discuss disclosure requirements for a lessor in the final leases standard.

1. The purpose of this paper is to discuss disclosure requirements for a lessor in the final leases standard. IASB Agenda ref 3B STAFF PAPER July 2014 REG FASB IASB Meeting Project Paper topic Leases Lessor disclosure requirements CONTACT(S) Roberta Ravelli rravelli@ifrs.org +44 (0) 20 7246 6935 Scott A. Muir

More information

2014 Statutory Combined Annual Statement Schedule P Disclosure

2014 Statutory Combined Annual Statement Schedule P Disclosure 2014 Statutory Combined Annual Statement Schedule P Disclosure This disclosure provides supplemental facts and methodologies intended to enhance understanding of Schedule P reserve data. It provides additional

More information

New Developments Summary

New Developments Summary January 28, 2014 NDS 2014-02 New Developments Summary Accounting alternative for private company goodwill ASU 2014-02 codifies simplified accounting alternative for subsequent measurement of goodwill and

More information

Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. November 2014.

Educational Note. Premium Liabilities. Committee on Property and Casualty Insurance Financial Reporting. November 2014. Educational Note Premium Liabilities Committee on Property and Casualty Insurance Financial Reporting November 2014 Document 214114 Ce document est disponible en français 2014 Canadian Institute of Actuaries

More information

AASB Simplified Exposure Draft Tier 2 Supplement to ED 201 July Insurance Contracts. Adverse comments to AASB by 30 September 2011

AASB Simplified Exposure Draft Tier 2 Supplement to ED 201 July Insurance Contracts. Adverse comments to AASB by 30 September 2011 AASB Simplified Exposure Draft July 2011 Insurance Contracts Adverse comments to AASB by 30 September 2011 Background on Australian Accounting Standards The Australian Accounting Standards Board (AASB)

More information

2 COMMENCEMENT DATE 5 3 DEFINITIONS 5 4 MATERIALITY 8. 5 DOCUMENTATION 9 5.1 Requirement for a Report 9 5.2 Content of a Report 9

2 COMMENCEMENT DATE 5 3 DEFINITIONS 5 4 MATERIALITY 8. 5 DOCUMENTATION 9 5.1 Requirement for a Report 9 5.2 Content of a Report 9 PROFESSIONAL STANDARD 300 VALUATIONS OF GENERAL INSURANCE CLAIMS INDEX 1 INTRODUCTION 3 1.1 Application 3 1.2 Classification 3 1.3 Background 3 1.4 Purpose 4 1.5 Previous versions 4 1.6 Legislation and

More information

Financial Instruments (Topic 825)

Financial Instruments (Topic 825) Proposed Accounting Standards Update Issued: June 27, 2012 Comments Due: September 25, 2012 Financial Instruments (Topic 825) Disclosures about Liquidity Risk and Interest Rate Risk This Exposure Draft

More information

VALIDUS ANNOUNCES 2015 FULL YEAR NET INCOME OF $374.9 MILLION 2015 NET OPERATING RETURN ON AVERAGE EQUITY OF 11.3%

VALIDUS ANNOUNCES 2015 FULL YEAR NET INCOME OF $374.9 MILLION 2015 NET OPERATING RETURN ON AVERAGE EQUITY OF 11.3% VALIDUS ANNOUNCES 2015 FULL YEAR NET INCOME OF $374.9 MILLION 2015 NET OPERATING RETURN ON AVERAGE EQUITY OF 11.3% BOOK VALUE PER DILUTED COMMON SHARE OF $42.33 AT DECEMBER 31, 2015 Pembroke, Bermuda,

More information

Dataline A look at current financial reporting issues

Dataline A look at current financial reporting issues Dataline A look at current financial reporting issues No. 2013-22 November 21, 2013 What s inside? Overview... 1 The main details... 2 Quantifying errors... 2 Evaluating whether the financial statements

More information

Consolidated Financial Statements. FUJIFILM Holdings Corporation and Subsidiaries. March 31, 2015 with Report of Independent Auditors

Consolidated Financial Statements. FUJIFILM Holdings Corporation and Subsidiaries. March 31, 2015 with Report of Independent Auditors Consolidated Financial Statements FUJIFILM Holdings Corporation and Subsidiaries March 31, 2015 with Report of Independent Auditors Consolidated Financial Statements March 31, 2015 Contents Report of Independent

More information

Stock based compensation guidance to increase income statement volatility (see update note below)

Stock based compensation guidance to increase income statement volatility (see update note below) Stock based compensation guidance to increase income statement volatility (see update note below) No. US2016 03 April 19, 2016 (Revised April 25, 2016) What s inside: Background. 1 Key provisions 2 Income

More information

Insurance alert FASB Board Meeting Contracts March 7, 2012

Insurance alert FASB Board Meeting Contracts March 7, 2012 www.pwc.com/us/insurance Insurance alert FASB Board Meeting Contracts March 7, 2012 Insurance Since a variety of viewpoints are discussed at FASB and IASB meetings, and it is often difficult to characterize

More information

Health Care Entities (Topic 954)

Health Care Entities (Topic 954) No. 2011-07 July 2011 Entities (Topic 954) Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and the Allowance for Doubtful Accounts for Certain Entities a consensus of the

More information

FINANCIAL REVIEW. 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations

FINANCIAL REVIEW. 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations 2012 FINANCIAL REVIEW 18 Selected Financial Data 20 Management s Discussion and Analysis of Financial Condition and Results of Operations 82 Quantitative and Qualitative Disclosures About Market Risk 88

More information

Dataline A look at current financial reporting issue

Dataline A look at current financial reporting issue Dataline A look at current financial reporting issue No. 2013-24 November 25, 2013 What s inside: Overview... 1 At a glance... 1 The main details... 1 Contents of the Guide... 2 Concepts and application

More information

Getting More From Your Actuarial Analysis

Getting More From Your Actuarial Analysis Getting More From Your Actuarial Analysis For Companies Retaining Property/Casualty Insurance Risks PwC 1 Introduction Many companies retain property/casualty insurance (P&C) risks, such as workers' compensation,

More information

The Depository Trust Company

The Depository Trust Company The Depository Trust Company Unaudited Condensed Consolidated Financial Statements as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015 THE DEPOSITORY TRUST

More information

Financial Review. 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations

Financial Review. 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations 2011 Financial Review 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations 82 Quantitative and Qualitative Disclosures About Market Risk 90

More information

Minnesota Workers' Compensation Assigned Risk Plan. Financial Statements Together with Independent Auditors' Report

Minnesota Workers' Compensation Assigned Risk Plan. Financial Statements Together with Independent Auditors' Report Minnesota Workers' Compensation Assigned Risk Plan Financial Statements Together with Independent Auditors' Report December 31, 2012 CONTENTS Page INDEPENDENT AUDITORS' REPORT 1 FINANCIAL STATEMENTS: Balance

More information

KINGSTONE COMPANIES, INC.

KINGSTONE COMPANIES, INC. SECURITIES & EXCHANGE COMMISSION EDGAR FILING KINGSTONE COMPANIES, INC. Form: 10-Q Date Filed: 2015-11-12 Corporate Issuer CIK: 33992 Copyright 2015, Issuer Direct Corporation. All Right Reserved. Distribution

More information

Stay Informed Pharmaceutical and Life Sciences Industry Alert 2015-3. FASB Income tax projects update A PLS perspective Background

Stay Informed Pharmaceutical and Life Sciences Industry Alert 2015-3. FASB Income tax projects update A PLS perspective Background Stay Informed Pharmaceutical and Life Sciences Industry Alert 2015-3 FASB Income tax projects update A PLS perspective Background The FASB has accelerated the pace of rulemaking in recent months, largely

More information

FACILITY ASSOCIATION NOVA SCOTIA RISK SHARING POOL

FACILITY ASSOCIATION NOVA SCOTIA RISK SHARING POOL Financial Statements of FACILITY ASSOCIATION Deloitte & Touche LLP Brookfield Place 181 Bay Street Suite 1400 Toronto ON M5J 2V1 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca Auditors Report

More information

Life Insurance Contracts

Life Insurance Contracts Compiled AASB Standard AASB 1038 Life Insurance Contracts This compiled Standard applies to annual reporting periods beginning on or after 1 January 2011 but before 1 January 2013. Early application is

More information

Dataline A look at current financial reporting issues

Dataline A look at current financial reporting issues Dataline A look at current financial reporting issues Cumulative translation adjustment A compromise to achieve consistency. 2013-10 May 16, 2013 What s inside: Overview... 1 At a glance... 1 Background

More information

Applying VIE Guidance to Common Control Leasing Arrangements

Applying VIE Guidance to Common Control Leasing Arrangements Applying VIE Guidance to Common Control Leasing Arrangements HIGHLIGHTS OF THE UPDATE... 1 APPENDIX A FREQUENTLY ASKED QUESTIONS... 4 APPENDIX B DEFINITION OF A PUBLIC BUSINESS ENTITY... 9 APPENDIX C ILLUSTRATIVE

More information

Life Insurance Contracts

Life Insurance Contracts Compiled Accounting Standard AASB 1038 Life Insurance Contracts This compilation was prepared on 23 September taking into account amendments made up to and including 15 September 2005. Prepared by the

More information

Financial Review. 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations

Financial Review. 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations Financial Review 16 Selected Financial Data 18 Management s Discussion and Analysis of Financial Condition and Results of Operations 80 Quantitative and Qualitative Disclosures About Market Risk 86 Consolidated

More information

FASB Agenda. April 2012. Project. What is. 1. Policy loans. Izabela Ruta Chris Irwin Jennifer Weiner. jmweiner@fasb.org. Page 1 of 17. IFRSs.

FASB Agenda. April 2012. Project. What is. 1. Policy loans. Izabela Ruta Chris Irwin Jennifer Weiner. jmweiner@fasb.org. Page 1 of 17. IFRSs. IASB Agenda ref 2H STAFF PAPER REG FASB IASBB Meeting FASB Agenda ref April 2012 Project Insurance contracts Paper topic Riders and Policy Loans CONTACT(S) Izabela Ruta Chris Irwin iruta@ ifrs.org cgirwin@fasb.org

More information

Compilation of Financial Statements: Accounting and Review Services Interpretations of Section 80

Compilation of Financial Statements: Accounting and Review Services Interpretations of Section 80 Compilation of Financial Statements 2035 AR Section 9080 Compilation of Financial Statements: Accounting and Review Services Interpretations of Section 80 1. Reporting When There Are Significant Departures

More information

Private company variable interest entity relief

Private company variable interest entity relief No. US2014-03 July 17, 2014 What s inside: Background... 1 Key provisions... 2 Common control... 3 Lease arrangement... 4 Leasing activities... 4 Sufficient collateral... 5 Examples... 6 Transition from

More information

Canadian Association of University Business Officers

Canadian Association of University Business Officers Canadian Association of University Business Officers Financial Reporting Information Note Employee Future Benefits January 2012 Purpose Canadian colleges and universities hereinafter referred to as higher

More information

Compensation Retirement Benefits (Topic 715)

Compensation Retirement Benefits (Topic 715) No. 2015-04 April 2015 Compensation Retirement Benefits (Topic 715) Practical Expedient for the Measurement Date of an Employer s Defined Benefit Obligation and Plan Assets An Amendment of the FASB Accounting

More information

July 7, 2014. Re: Proposed Disclosure Requirements for Short Duration Insurance Contracts

July 7, 2014. Re: Proposed Disclosure Requirements for Short Duration Insurance Contracts 2101 L Street NW Suite 400 Washington, DC 20037 202-828-7100 Fax 202-293-1219 July 7, 2014 www.aiadc.org Mr. Russell Golden Chair, Financial Accounting Standards Board 401 Merritt 7 P.O. Box 5116 Norwalk,

More information

CARDIOME PHARMA CORP.

CARDIOME PHARMA CORP. Consolidated Financial Statements (Expressed in thousands of United States (U.S.) dollars) (Prepared in accordance with generally accepted accounting principles used in the United States of America (U.S.

More information

Insurance Contracts Overview of FASB DP and IASB ED

Insurance Contracts Overview of FASB DP and IASB ED 1 Insurance Contracts Overview of FASB DP and IASB ED Moderator: Marc F. Oberholtzer, FCAS, MAAA, PricewaterhouseCoopers Presenter: Akwasi A. Ampofo, FASB Project Manager Disclaimer 2 This document has

More information

Leases (Topic 840) Proposed Accounting Standards Update. Issued: August 17, 2010 Comments Due: December 15, 2010

Leases (Topic 840) Proposed Accounting Standards Update. Issued: August 17, 2010 Comments Due: December 15, 2010 Proposed Accounting Standards Update Issued: August 17, 2010 Comments Due: December 15, 2010 Leases (Topic 840) This Exposure Draft of a proposed Accounting Standards Update of Topic 840 is issued by the

More information

Sample Disclosures Accounting for Income Taxes. February 2015

Sample Disclosures Accounting for Income Taxes. February 2015 Sample Disclosures Accounting for Income Taxes February 2015 Contents Use of These Sample Disclosures 1 Management s Discussion and Analysis General 2 MD&A Results of Operations 2 MD&A Critical Accounting

More information

Goodwill PCC Alternative Assurance Tax Advisory dhgllp.com

Goodwill PCC Alternative Assurance Tax Advisory dhgllp.com Assurance Tax Advisory dhgllp.com Overview...3 Appendix A - Frequently Asked Questions...4 1.704.367.7020 dhgllp.com 2016 by Dixon Hughes Goodman LLP. All rights reserved. Permission is granted to view,

More information

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010

Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Contents Independent Auditors' Report 2 Financial Statements Balance Sheet 3 Statement of Operations and Unappropriated

More information

Australian Accounting Standards Board (AASB)

Australian Accounting Standards Board (AASB) FACT SHEET September 2011 1023 General Insurance Contracts (This fact sheet is based on the standard as at 1 January 2011.) Important note: This standard is an Australian specific standard with no international

More information

Short term leases, defined as a lease term of one year or less, are to be accounted for under the same operating lease method that currently exists.

Short term leases, defined as a lease term of one year or less, are to be accounted for under the same operating lease method that currently exists. Lease Accounting Updated January 2014 Page 1 Lease Accounting The pending changes in lease accounting have been a hot topic item since 2009, when the Financial Accounting Standards Board (FASB) and International

More information

FASB Issues PCC Alternative for Identifiable Intangible Assets in a Business Combination

FASB Issues PCC Alternative for Identifiable Intangible Assets in a Business Combination FASB Issues PCC Alternative for Identifiable Intangible Assets in a Business Combination February 25, 2015 Highlights of the Update In This Update Highlights of the Update... 1 Appendix A Frequently Asked

More information

EITF ABSTRACTS. Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity

EITF ABSTRACTS. Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity EITF ABSTRACTS Issue No. 03-8 Title: Accounting for Claims-Made Insurance and Retroactive Insurance Contracts by the Insured Entity Dates Discussed: March 13 14, 1986; May 1, 1986; July 24, 1986; May 19

More information

FIRST PRIORITY TAX SOLUTIONS INC.

FIRST PRIORITY TAX SOLUTIONS INC. FIRST PRIORITY TAX SOLUTIONS INC. FORM 10-Q (Quarterly Report) Filed 05/20/15 for the Period Ending 03/31/15 Address 137 N. MAIN STREET SUITE 200A DAYTON, OH 45402 Telephone 859-268-6264 CIK 0001622408

More information

Short Duration Contracts: Modified Approach. Comparison of the modified approach to current GAAP

Short Duration Contracts: Modified Approach. Comparison of the modified approach to current GAAP IASB/FASB Meeting 27 April 2011 IASB Agenda reference 1 FASB Agenda Staff Paper reference 65 Contact(s) Jennifer Weiner jmweiner@fasb.org +1 (203) 956-5305 Shayne Kuhanek skuhaneck@fasb.org +1 (203) 956-3458

More information

HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN

HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN Financial Statements of HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN KPMG LLP Telephone (204) 957-1770 Chartered Accountants Fax (204) 957-0808 Suite 2000 One Lombard Place

More information

Getting More From Your Actuarial Loss Reserve Analysis. For Property/Casualty Insurance and Reinsurance Companies

Getting More From Your Actuarial Loss Reserve Analysis. For Property/Casualty Insurance and Reinsurance Companies Getting More From Your Actuarial Loss Reserve Analysis For Property/Casualty Insurance and Reinsurance Companies Introduction Many property/casualty insurance and reinsurance companies retain the services

More information

IASB/FASB Meeting Week beginning 14 February 2011. Discounting Non-life Contract Liabilities

IASB/FASB Meeting Week beginning 14 February 2011. Discounting Non-life Contract Liabilities IASB/FASB Meeting Week beginning 14 February 2011 IASB Agenda reference 3E FASB Agenda Staff Paper reference 58E IASB Contact(s) Matthias Zeitler mzeitler@iasb.org +44 (0)20 7246 6453 FASB Contact(s) Shayne

More information

Introduction. Coverage. Principle 1: Embedded Value (EV) is a measure of the consolidated value of shareholders interests in the covered business.

Introduction. Coverage. Principle 1: Embedded Value (EV) is a measure of the consolidated value of shareholders interests in the covered business. Introduction Principle 1: Embedded Value (EV) is a measure of the consolidated value of shareholders interests in the covered business. G1.1 The EV Methodology ( EVM ) described here is applied to the

More information

Balance Sheet (Topic 210)

Balance Sheet (Topic 210) No. 2013-01 January 2013 Balance Sheet (Topic 210) Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities An Amendment of the FASB Accounting Standards Codification The FASB Accounting

More information

Statutory Financial Statements and Report of Independent Certified Public Accountants. Massachusetts Catholic Self-Insurance Group, Inc.

Statutory Financial Statements and Report of Independent Certified Public Accountants. Massachusetts Catholic Self-Insurance Group, Inc. Statutory Financial Statements and Report of Independent Certified Public Accountants Massachusetts Catholic Self-Insurance Group, Inc. Contents Page Report of Independent Certified Public Accountants

More information

Accounting and Auditing Supplement No. 2 2015

Accounting and Auditing Supplement No. 2 2015 Accounting and Auditing Supplement No. 2 2015 ACCOUNTING AND AUDITING SUPPLEMENT NO. 2 2015 INTRODUCTION This update includes the more significant accounting and auditing developments from April 2015

More information

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED FINANCIAL STATEMENTS CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2010 BANKERS PETROLEUM LTD. CONSOLIDATED BALANCE SHEETS (Unaudited, expressed in thousands of US dollars) ASSETS June 30 2010 December 31 2009 Current assets

More information

TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS

TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS TRANSITION TO INTERNATIONAL FINANCIAL REPORTING STANDARDS The European Union has approved the adoption of the International Financial Reporting Standards (IFRSs) issued by the International Accounting

More information

International Financial Reporting Standard 8 Operating Segments

International Financial Reporting Standard 8 Operating Segments International Financial Reporting Standard 8 Operating Segments Core principle 1 An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects

More information

Lifting the fog* Accounting for uncertainty in income taxes

Lifting the fog* Accounting for uncertainty in income taxes Lifting the fog* Accounting for uncertainty in income taxes Contents Introduction 01 Identifying uncertain tax positions 02 Recognizing uncertain tax positions 03 Measuring the tax benefit 04 Disclosures

More information

HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN

HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN Financial Statements of HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN KPMG LLP Telephone (204) 957-1770 Chartered Accountants Fax (204) 957-0808 Suite 2000 One Lombard Place

More information

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q È QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended

More information

INFORMATION FOR OBSERVERS. IASB Meeting: Insurance Working Group, April 2008 Paper: Non-life insurance contracts (Agenda paper 6)

INFORMATION FOR OBSERVERS. IASB Meeting: Insurance Working Group, April 2008 Paper: Non-life insurance contracts (Agenda paper 6) 30 Cannon Street, London EC4M 6XH, England International Phone: +44 (0)20 7246 6410, Fax: +44 (0)20 7246 6411 Accounting Standards Email: iasb@iasb.org.uk Website: http://www.iasb.org Board This document

More information

Lawson Software, Inc. 10 Q Quarterly report pursuant to sections 13 or 15(d) Filed on 10/8/2009 Filed Period 8/31/2009

Lawson Software, Inc. 10 Q Quarterly report pursuant to sections 13 or 15(d) Filed on 10/8/2009 Filed Period 8/31/2009 Lawson Software, Inc. 10 Q Quarterly report pursuant to sections 13 or 15(d) Filed on 10/8/2009 Filed Period 8/31/2009 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10 Q

More information

International Financial Reporting Standard 7. Financial Instruments: Disclosures

International Financial Reporting Standard 7. Financial Instruments: Disclosures International Financial Reporting Standard 7 Financial Instruments: Disclosures INTERNATIONAL FINANCIAL REPORTING STANDARD AUGUST 2005 International Financial Reporting Standard 7 Financial Instruments:

More information

Prince William Self-Insurance Group Workers Compensation Association. Financial Report June 30, 2013

Prince William Self-Insurance Group Workers Compensation Association. Financial Report June 30, 2013 Prince William Self-Insurance Group Workers Compensation Association Financial Report June 30, 2013 Contents Report of Independent Auditor 1-2 Management s Discussion and Analysis (Unaudited) 3-6 Basic

More information

FINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING

FINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING FINAL RECOMMENDATIONS FOR PROPERTY-CASUALTY INSURANCE COMPANY FINANCIAL REPORTING Issued by authority of Council January 1990 Canadian Institute of Actuaries 1 Institut Canadien des Actuaires SECTION I

More information

Final. Final Standards Part 2000 Insurance to conform to the adoption of International Financial Reporting Standards (IFRS) as Canadian GAAP

Final. Final Standards Part 2000 Insurance to conform to the adoption of International Financial Reporting Standards (IFRS) as Canadian GAAP Final Final Standards Part 2000 Insurance to conform to the adoption of International Financial Reporting Standards (IFRS) as Canadian GAAP Actuarial Standards Board November 2009 Document 209117 Ce document

More information

Private Company Reporting: Accounting for Goodwill

Private Company Reporting: Accounting for Goodwill Private Company Reporting: Accounting for Goodwill Table of Contents EXECUTIVE SUMMARY... 3 SCOPE... 3 DEFINITION OF PUBLIC BUSINESS ENTITY... 3 RECOGNITION & MEASUREMENT... 4 AMORTIZATION OF GOODWILL...

More information

New Expanded Disclosures

New Expanded Disclosures September 2010 Expanded Disclosures About Credit Quality of Financing Receivables and Allowance for Credit Losses Required as Early as 2010 Accounting Insights is a publication of McGladrey & Pullen, LLP

More information

Illustrative Financial Statements Prepared Using the Financial Reporting Framework for Small- and Medium-Entities

Illustrative Financial Statements Prepared Using the Financial Reporting Framework for Small- and Medium-Entities Illustrative Financial Statements Prepared Using the Financial Reporting Framework for Small- and Medium-Entities Illustrative Financial Statements This component of the toolkit contains sample financial

More information

Dataline A look at current financial reporting issues

Dataline A look at current financial reporting issues Dataline A look at current financial reporting issues No. 2011-02 January 10, 2011 (Revised May 12, 2011*) What s inside: At a glance... 1 The main details... 1 Current practice under existing guidance...

More information

Financial reporting developments. A comprehensive guide. Earnings per share. May 2014

Financial reporting developments. A comprehensive guide. Earnings per share. May 2014 Financial reporting developments A comprehensive guide Earnings per share May 2014 To our clients and other friends We are pleased to provide you with the latest edition of our Financial reporting developments

More information

IPSAS 3 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS

IPSAS 3 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS IPSAS 3 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS Acknowledgment This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard

More information

Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting

Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting Indian Accounting Standard (Ind AS) 34 Interim Financial Reporting CONTENTS Paragraphs OBJECTIVE SCOPE 1-3A DEFINITIONS 4 CONTENT OF AN INTERIM FINANCIAL REPORT 5-25 Minimum components of an interim financial

More information

Disclosure of Interests in Other Entities

Disclosure of Interests in Other Entities IFAC Board Exposure Draft 52 October 2013 Comments due: February 28, 2014 Proposed International Public Sector Accounting Standard Disclosure of Interests in Other Entities This Exposure Draft 52, Disclosure

More information

Australian Accounting Standards Board (AASB)

Australian Accounting Standards Board (AASB) Standards Board () FACT SHEET September 2011 1038 Life Insurance Contracts (This fact sheet is based on the standard as at 1 January 2011.) Important note: This standard is an Australian specific standard

More information

Intangibles Goodwill and Other (Topic 350)

Intangibles Goodwill and Other (Topic 350) No. 2014-02 January 2014 Intangibles Goodwill and Other (Topic 350) Accounting for Goodwill a consensus of the Private Company Council An Amendment of the FASB Accounting Standards Codification The FASB

More information

IPSAS 3 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS

IPSAS 3 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS IPSAS 3 ACCOUNTING POLICIES, CHANGES IN ACCOUNTING ESTIMATES AND ERRORS Acknowledgment This International Public Sector Accounting Standard (IPSAS) is drawn primarily from International Accounting Standard

More information

SEC Reporting for Business Combinations and Related Topics A Roadmap to Applying SEC Regulation S-X to the Acquisition of a Business

SEC Reporting for Business Combinations and Related Topics A Roadmap to Applying SEC Regulation S-X to the Acquisition of a Business SEC Reporting for Business Combinations and Related Topics A Roadmap to Applying SEC Regulation S-X to the Acquisition of a Business This publication contains general information only and Deloitte is not,

More information

GOLDMAN SACHS EXECUTION & CLEARING, L.P. and SUBSIDIARIES

GOLDMAN SACHS EXECUTION & CLEARING, L.P. and SUBSIDIARIES CONSOLIDATED STATEMENT of FINANCIAL CONDITION PURSUANT to RULE 17a-5 of the SECURITIES and EXCHANGE COMMISSION As of June 30, 2010 30 HUDSON STREET JERSEY CITY, NJ 07302 CONSOLIDATED STATEMENT OF FINANCIAL

More information

[Source: Added at 17 Ok Reg 1659, eff 7-14-00]

[Source: Added at 17 Ok Reg 1659, eff 7-14-00] TITLE 365. INSURANCE DEPARTMENT CHAPTER 10. LIFE, ACCIDENT AND HEALTH SUBCHAPTER 17. VALUATION OF LIFE INSURANCE POLICIES REGULATION INCLUDING THE INTRODUCTION AND USE OF NEW SELECT MORTALITY FACTORS)

More information

VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION (Including the Introduction and Use of New Select Mortality Factors)

VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION (Including the Introduction and Use of New Select Mortality Factors) Table of Contents Model Regulation Service October 2009 VALUATION OF LIFE INSURANCE POLICIES MODEL REGULATION (Including the Introduction and Use of New Select Mortality Factors) Section 1. Section 2.

More information

Additional Aspects of Financial Reporting and Financial Analysis

Additional Aspects of Financial Reporting and Financial Analysis CHAPTER Additional Aspects of Financial Reporting and Financial Analysis CHAPTER OBJECTIVES After careful study of this chapter, you will be able to: 1. Describe an auditor's report. 2. Understand the

More information

Business Combinations (Topic 805)

Business Combinations (Topic 805) No. 2010-29 December 2010 Business Combinations (Topic 805) Disclosure of Supplementary Pro Forma Information for Business Combinations a consensus of the FASB Emerging Issues Task Force The FASB Accounting

More information

Date of release: 01/29/2015. The Chubb Corporation 2014 Update on Asbestos Reserves

Date of release: 01/29/2015. The Chubb Corporation 2014 Update on Asbestos Reserves Date of release: 01/29/2015 The Chubb Corporation 2014 Update on Asbestos Reserves Forward-Looking Statements The following materials contain forward-looking statements, including those relating to loss

More information

Statement of Financial Accounting Standards No. 144

Statement of Financial Accounting Standards No. 144 Statement of Financial Accounting Standards No. 144 FAS144 Status Page FAS144 Summary Accounting for the Impairment or Disposal of Long-Lived Assets August 2001 Financial Accounting Standards Board of

More information

STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 34. Interim Financial Reporting Illustrative Examples

STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 34. Interim Financial Reporting Illustrative Examples STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 34 Interim Financial Reporting Illustrative Examples CONTENTS A Illustration of periods required to be presented B Examples of applying the recognition

More information

Germania Mutual Insurance Company Financial Statements For the year ended December 31, 2014

Germania Mutual Insurance Company Financial Statements For the year ended December 31, 2014 Germania Mutual Insurance Company Financial Statements For the year ended Financial Statements For the year ended Table of Contents Page Independent Auditor's Report 2 Statement of Financial Position 3

More information

Statement of Financial Accounting Standards No. 131

Statement of Financial Accounting Standards No. 131 Statement of Financial Accounting Standards No. 131 FAS131 Status Page FAS131 Summary Disclosures about Segments of an Enterprise and Related Information June 1997 Financial Accounting Standards Board

More information

ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C.

ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C. ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C. Financial statements and independent auditor s report for the year ended 31 December 2012 ARABIAN SCANDINAVIAN INSURANCE COMPANY P.L.C. Contents Pages Independent

More information

Chapter 47 - GROUP SELF-INSURANCE RULE IMIPLEMENTING THE INTERGOVERNMENTAL RISK MANAGEMENT ACT

Chapter 47 - GROUP SELF-INSURANCE RULE IMIPLEMENTING THE INTERGOVERNMENTAL RISK MANAGEMENT ACT Title 210 - NEBRASKA DEPARTMENT OF INSURANCE Chapter 47 - GROUP SELF-INSURANCE RULE IMIPLEMENTING THE INTERGOVERNMENTAL RISK MANAGEMENT ACT 001. Authority. This rule is promulgated pursuant to the authority

More information

International Financial Reporting Standards (IFRS)

International Financial Reporting Standards (IFRS) FACT SHEET June 2010 IFRS 3 Business Combinations (This fact sheet is based on the standard as at 1 January 2010.) Important note: This fact sheet is based on the requirements of the International Financial

More information

SAGICOR FINANCIAL CORPORATION

SAGICOR FINANCIAL CORPORATION Interim Financial Statements Nine-months ended September 30, 2015 FINANCIAL RESULTS FOR THE CHAIRMAN S REVIEW The Sagicor Group recorded net income from continuing operations of US $60.4 million for the

More information

PROTECTIVE LIFE INSURANCE CO 10-Q. Quarterly report pursuant to sections 13 or 15(d) Filed on 11/14/2011 Filed Period 09/30/2011

PROTECTIVE LIFE INSURANCE CO 10-Q. Quarterly report pursuant to sections 13 or 15(d) Filed on 11/14/2011 Filed Period 09/30/2011 PROTECTIVE LIFE INSURANCE CO 10-Q Quarterly report pursuant to sections 13 or 15(d) Filed on 11/14/2011 Filed Period 09/30/2011 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549

More information

Financial Services Insurance (Topic 944)

Financial Services Insurance (Topic 944) No. 2010-26 October 2010 Financial Services Insurance (Topic 944) Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts a consensus of the FASB Emerging Issues Task Force The FASB

More information