Description: This article describes the shortcomings of a rules–based valuation system and the benefits of a principles–based valuation system. It discusses the concerns that have arisen since the introduction of Canadian GAAP and Canada's current direction toward a principles-based valuation of insurance liabilities.

Description: This session at the 1989 Valuation Actuary Symposium looks at issues created by changes in financial reporting in Canada related to the Policy Premium Method and dynamic solvency testing.