Description: The report begins with Tan's paper Source-of-Earnings Analysis under FAS97 Universal Life Accounting that defines a procedure for analyzing the sources of profit. This paper extends the analysis to consider the effect of actual experience varying from expected and the effect of those variances on assumptions for the future. Also the paper illustrates examples of the effect of changing future assumptions or unlocking on the magnitude and incidence of profits and amortization. A discussion of the paper follows. From Transactions of Society of Actuaries 1990, Vol. 42.

Description: An update on the status of past, current and future research projects pertaining to the Financial Reporting Section.

Description: In this article, we collected data from the companies’ roll-forward disclosures related to calendar years 2021 and 2022 on Market Risk Benefit and shared a high-level summary of the Market Risk Benefit volatility that a focus group of companies incurred and summarized the most common ways to mitigate volatility.

Description: The latest draft ORSA Guidance Manual was released on Oct. 14, 2011. An overview of the requirements from a qualitative, quantitative and governance perspective was provided in the December edition of the Financial Reporter. Several trade associations and com- panies commented on the draft.

Description: Actuaries are accustomed to considering how much conservatism is appropriate in their estimates, whether made for pricing or for mea- surement of liabilities. In the proposals for a new standard on accounting for insurance contracts, this conservatism is referred to by the International Accounting Standards Board IASB and the Financial Accounting Standard Board FASB of the United States as the risk adjustment.

Description: FASB decisions made regarding potential changes to US GAAP accounting that differ from corresponding IASB decisions, causing the potential accounting changes.

Description: This session from the 2005 SOA Spring Meeting discusses SOP 03-1, DAC on internal replacements and Sarbanes-Oxley - SOX Section 404. From the Record of the Society of Actuaries, Vol. 31, No. 1. Session 70F

Description: This article examines the impact of FAS 97 on the emergence of earnings for the most recent versions of UL products, those with interest rate and return of load kickers.

Description: This panel discussion, which occurred at the May 1982 Society of Actuaries meeting in Colorado Springs, presented a discussion on developments related to Generally Accepted Accounting Principles- GAAP. The discussion included: FASB reformulation of audit guide, treatment of single premium deferred annuities, problems of applying GAAP principles to Universal Life, and a discussion of papers titled: a. A Policy-Year Model for GAAP Valuation of Coinsurance and Modified Coinsuranee, by David N. Becker and Michael V. Eckman and, b. GAAP for Nonguaranteed Premium Life Insurance, by Kriss Cloninger III.

Description: Discusses: [1] the effects of Financial Accounting Standard No. 97 [FAS 97] on recoverability and loss-recognition issues, [2] interest-crediting strategy, ways and means of maintaining the planned interest spread, the effects of the various strategies on lapse experience, and the ultimate effect on recoverability of the deferred acquisition costs, and [3] premium-deficiency testing and the modification of interest, mortality, and expense margins to satisfy the question of loss recognition, or lack of the ability to recover the remaining deferred asset. From the 1988 Record of Society of Actuaries, Vol. 14, No. 3.