Description: This paper considers two principles which at present are given little weight in accounting for investments: 1. the reported earnings of a business entity should not change solely because an investment is sold at a capital gain or loss and the proceeds are reinvested, and 2. the accounting treatment of common stock investments should not vary according to the portion of the issuer's outstanding common stock which the investment represents. The implications of these principles are explored in accounting for bonds, stocks and business combinations. A discussion of this paper is included.

Description: This report summarizes the results of a research project undertaken by the Society of Actuaries to study the possible effects of the International Accounting Standards Board’s IASB Discussion Paper describing its Preliminary Views on Insurance Contracts on nine representative U.S. life, health and annuity products.

Description: Existing actuarial literature does not provide a consolidated comparison of the available alternatives for accounting for universal life. This paper will analyze the similarities and differences between the existing prescribed method and the proposed alternatives. From Transactions of Society of Actuaries 1987, Vol. 39.

Description: This paper presents a policy-year model for GAAP valuation of reinsurance accepted on the coinsurance and modified coinsurance bases. Also presented are the interrelationships between the model's methodology and statutory accounting procedures, a discussion of experience-refunding situations, and a demonstration of the model's ability to yield GAAP profits as a level percentage of premium. From Transactions of Society of Actuaries 1981, Vol. 33.

Description: The purpose of this paper note is to highlight the similarities of results from the amortization of initial life insurance acquisition costs by means of an acquisition cost amortization schedule similar to that used by accountants versus a set of actuarial-type acquisition cost natural reserve factors appropriately applied to beginning and ending in-force units.

Description: An analysis of how to compute the variance of the present value of future annuity payments as a component of assessing the mortality component of the provision for adverse deviation in the computation of GAAP reserves.