Exposure Drafts, Comment Letters, and Statements of Position
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Description
This proposed AICPA Statement of Position (SOP) amends AICPA SOP 94-5, Disclosures of Certain Matters in the Financial Statements of Insurance Enterprises, as a result of the completion of the National Association of Insurance Commissioners (NAIC) Codification of statutory accounting practices for certain insurance enterprises. The amendments to SOP 94-5 included in this proposed SOP would require insurance enterprises to disclose, at the date each balance sheet is presented, beginning with financial statements for fiscal years beginning on or after January 1, 2001, a description of the prescribed or permitted statutory accounting practice and the related monetary effect on statutory surplus of using an accounting practice that differs from either state-prescribed statutory accounting practices or NAIC statutory accounting practices. Retroactive application is not permitted. Those disclosures should be made if (a) state-prescribed statutory accounting practices differ from NAIC statutory accounting practices or (b) permitted state statutory accounting practices differ from either state prescribed statutory accounting practices or NAIC statutory accounting practices, and the use of prescribed or permitted statutory accounting practices (individually or in the aggregate) results in reported statutory surplus or risk-based capital that is materially different from the statutory surplus or risk-based capital that would have been reported had NAIC statutory accounting practices been followed. This proposed SOP' also includes the following auditing guidance that has been updated as a result of the completion of the NAIC Codification: AICPA SOP 95-5, Auditor's Reporting on Statutory Financial Statements of Insurance Enterprises, and SOP 94-1, Inquiries of State Insurance Regulators; and AICPA Auditing Interpretation No. 12, "Evaluation of the Appropriateness of Informative Disclosures in Insurance Enterprises' Financial Statements Prepared on a Statutory Basis," of Statement on Auditing Standards (SAS) 62, Special Reports (AICPA, Professional Standards, vol. 1, AU sec. 9623.60-.77). The included auditing guidance has been approved by the Auditing Standards Board. This proposed SOP is effective for financial statements and audits of financial statements for fiscal years beginning on or after January 1, 2001. If comparative financial statements are presented for fiscal years beginning before January 1, 2001, the disclosure provisions of SOP 94-5 effective prior to this SOP apply to permitted statutory accounting practices by the domiciliary state insurance department.
Publication Date
2001
Relational Format
Book
Keywords
Insurance -- Accounting -- Law and legislation -- United States; Insurance -- Accounting -- Standards; Disclosure in accounting; National Association of Insurance Commissioners. Accounting practices and procedures manual
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Certified Public Accountants. Accounting Standards Executive Committee and American Institute of Certified Public Accountants. NAIC Task Force, "Proposed statement of position : amendments to specific AICPA pronouncements for changes related to the NAIC codification ;Amendments to specific AICPA pronouncements for changes related to the NAIC codification; Exposure draft (American Institute of Certified Public Accountants), 2001, Apr. 2" (2001). Exposure Drafts, Comment Letters, and Statements of Position. 281.
https://egrove.olemiss.edu/aicpa_sop/281
Comments
Originally published by: American Institute of Certified Public Accountants; Copyright and permission to reprint held by: American Institute of Certified Public Accountants.