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," do not negate the requirements of section 623.10, which also states that when "the financial statements [prepared on an other comprehensive basis of accounting] contain items that are the same as, or similar to, those in financial statements prepared in conformity with generally accepted accounting principles, similar informative disclosures are appropriate."
The STATs are prepared in accordance with National Association of Insurance Commissioners (NAIC) statutory accounting principles
. Consolidated STATs for all life and property and casualty insurance companies in the affiliated group are not required by the NAIC.
Statutory accounting principles
, which differ in a number of respects from GAAP, are the accounting principles used by U.S.
statutory accounting principles
(SAP) rather than generally accepted accounting principles (GAAP).
Smith also attacked a provision of the proposed rule requiring insurers that operate thrifts to use Generally Accepted Accounting Principles (GAAP) instead of the current statutory accounting principles
(SAP), which insurers currently.
The proposal has been approved by the Statutory Accounting Principles
Working Group, the Accounting Practices and Procedures Task Force and the Financial Condition Committee.