The Statutory Accounting Principles Working Group (“SAPWG”) held a conference call on October 23, 2023. This post is intended to provide an informative snapshot of what was accomplished during the meeting, as well as help accelerate your determination of the impact the adoptions and modifications will have on your financial statements.
The SAPWG reviewed and adopted the following items that were previously exposed for comment. These items were adopted with minor revisions recommended by interested parties or regulators during the exposure period and discussed during the meeting and apply to all lines of business (Life/Fraternal, Property, Health and Title). All revisions are effective immediately, unless otherwise noted.
- Ref #2022-11: Collateral for Loans – This item revises SSAP No. 20 – Nonadmitted Assets and SSAP No. 21R – Other Admitted Assets to address inconsistencies between the guidance for collateral loans as raised by state regulators in 2022. The revisions to SSAP No. 21R provide more detail on qualifying collateral, require information to support fair value of collateral to be available on request and provide audit transition guidance for qualifying assets pledged as collateral in the form of equity for entities in the scope of SSAP No. 48 – Joint Ventures, Partnerships and Limited Liability Companies and SSAP No. 97 – Investments in Subsidiary, Controlled and Affiliated Entities.
- Ref #2023-18: ASU 2016-19, Technical Corrections and Improvements – This adoption includes revisions to adopt with modification ASU 2016-19 in SSAP No. 5R – Liabilities, Contingencies and Impairments of Assets, SSAP No. 92 – Postretirement Benefits Other Than Pensions, SSAP No. 102 – Pensions and SSAP No. 103R – Transfers and Servicing of Financial Assets and Extinguishments of Liabilities to update statutory accounting guidance for changes made to GAAP and standardize the terminology used for insurance contracts in SSAP No. 92 and SSAP No. 102. The changes made by ASU 2016-19 included minor clarifications, corrections, addition of codification references, guidance relocations and removal of redundant, outdated or superseded guidance.
- Ref #2023-19: ASU 2018-09, Codification Improvements – This item rejects ASU 2018-09 as not applicable for statutory accounting in Appendix D.
- Ref #2023-20: ASU 2020-10, Codification Improvements – This item rejects ASU 2020-10 as not applicable for statutory accounting in Appendix D.
- Ref #2023-21: Removal of Transition Guidance from SSAP No. 92 and SSAP No. 102 – This item includes revisions to SSAP No. 92 – Postretirement Benefits Other Than Pensions and SSAP No. 102 – Pensions to remove the transition guidance that was included in the initial adoptions as the 10-year effective period of the guidance has expired.
As always, Gain Compliance integrates the latest changes into the NAIC guidelines to streamline the reporting process. If there are any further questions or comments, please do not hesitate to reach out.
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