Month: June 2017

Technical Line – How principle-based reserving will affect life insurers

Go to Source Author: Our Technical Line takes a closer look at the new principle-based reserving (PBR) framework established by the National Association of Insurance Commissioners that will require life insurers to significantly change how they estimate reserves for most types of life insurance contracts under the statutory basis of accounting. Life insurers also will need to prepare a comprehensive PBR actuarial report documenting the judgments made in the PBR valuation process to submit to state insurance...

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To the Point – FASB TRG for credit losses discusses implementation issues

Go to Source Author: Members of the FASB TRG for credit losses reached general agreement on three implementation issues and may revisit two others. They generally agreed that entities can elect to use a discount rate adjusted for expected prepayments to determine the allowance for credit losses and can elect to maintain existing pools of purchased credit impaired assets at adoption or on an ongoing basis. They also generally agreed that entities should consider the cash flows of the assets underlying a beneficial interest, including expected prepayments, to determine whether the guidance on purchased financial assets with credit deterioration applies. The TRG may revisit questions about how to determine the life of a credit card receivable and how to forecast troubled debt...

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To the Point – PCAOB proposes expanding guidance on auditing estimates and using the work of specialists

Go to Source Author: The PCAOB proposed expanding the requirements for auditing accounting estimates, including fair value measurements. The PCAOB also proposed expanding the requirements for evaluating the work of a company’s specialist and applying a risk-based approach to supervising and evaluating the work of specialists employed or engaged by the auditor. Comments on both proposals are due by 30 August...

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