13) The provisions of the preamble of the revised Manual that states, "GAAP pronouncements do not become part of Statutory Accounting Principles
until and unless adopted by the NAIC" or any other explicit rejection of a GAAP disclosure does not negate the requirements of section 623.
Statutory accounting principles
, which differ in a number of respects from GAAP, are the accounting principles used by U.
In particular the controversy surrounded Statutory Accounting Principle
insurers, the Statutory Accounting Principles
Working Group, is rushing to get new risk corridors program reporting requirements in place as quickly as possible.
The letter also offers comparison information on the substantive differences between generally accepted accounting principles and the statutory accounting principles
(SAP) used by state regulators to evaluate the financial health of insurance companies.
It uses the existing NAIC-based risk-based capital approach and statutory accounting principles
The bill would make conforming changes to the law that would allow for the annual statements of insurers to be prepared substantially according to the statutory accounting principles
, practices, and procedures adopted from time to time by, or by the authority of the National Association of Insurance Commissioners, together with additions, omissions, or modifications similarly adopted from time to time as may be approved by the Superintendent of Insurance.
Several years ago, codification of statutory accounting principles
was created to eliminate state-by-state variations and by not ensuring uniform reserving, the NAIC could be opening itself up to those who favor federal regulation, be adds.
In some cases, the guidance provided for in the proposed regulations deviates from statutory accounting principles
, industry practice and the Service's own position; see Letter Rulings (TAMs) 9647002 and 9648002.
Mutual insurance companies are the major issuers of these financial instruments, according to AICPA Technical Manager Elaine Lehnert, and until recently they were allowed to apply statutory accounting principles
instead of generally accepted accounting principles.