We absorbed a number of accounting changes, the sale of McLane and the
valuation reserve and still were able to hit that target.
Consequently, if the Commission moves forward to adopt the proposed rules for loss accrual and
valuation reserves generally, we recommend that it eliminate the references to tax contingency and
valuation reserves that are already governed by FASB Statements No.
These financial size categories reflect the current adjusted amount of company surplus and securities
valuation reserves.
Similar to the Asset
Valuation Reserve, the risk-based capital formula would apply a moving two-year average ratio of company-to-industry experience in the absence of a standardized credit rating system for commercial real estate mortgages.
Although the Institute commended the SEC for its goal of enhancing the utility of financial disclosure statements, it questioned whether disclosure of a tax contingency or
valuation reserve for material items comprising the issuer's tax reserve would improve the reader's understanding of the statements.
The quarter was hit by a $20.5m restructuring charge, as well as an increase of $51.3m in the
valuation reserve for deferred tax assets and a $12.7m non-cash charge related to asset write-downs.
The regulatory initiatives include a "risk-based capital" (RBC) requirement effective by year-end 1993; an asset
valuation reserve (AVR) and an interest maintenance (IMR) requirement, both effective since the beginning of 1993; and a model investment law likely to become effective in 1994.
If the company's prospects decline or improve gradually over a period of years, the
valuation reserve may be increased or decreased correspondingly, thereby avoiding the sudden, distortive effects of dramatic adjustments.
A
valuation reserve against net deferred tax assets released in 4Q12 minimized income tax expense during the 2012 periods.
The buyer is CentraGas Holding Gmbh, Intesa said, adding that the deal will cause a negative contribution of some EUR100m after tax in its income statement, including around EUR60m attributable to release of foreign exchange differences from the related
valuation reserve.
