What does FAS 97 stand for?
FAS 97 Statement of Financial Accounting Standards No. 97 (FAS 97) TRANSACTIONS OF SOCIETY OF ACTUARIES 1989 VOL. 41 SOURCE-OF-EARNINGS ANALYSIS UNDER FAS 97
What does FAS 97 mean for Universal Life Insurance?
The Statement of Financial Accounting Standards No. 97 (FAS 97) [4], which prescribes the GAAP accounting methodology for universal life-type contracts, will have far-reaching effects on income-reporting and pricing of such contracts.
How is pF calculated under FAS 97?
Under FAS 97, this does not hold. Using Mr. Tan's notation, PF, = (1 - A%) G, - (i, - r,) DAC,_I, where, in the general case, r, is the GAAP discount rate and not necessarily the credited rate.
Is there an effect of hindsight on FAS 97?
Such an effect could occur, for instance, if the benefit of hindsight is used at the FAS 97 adoption date to restate prior years' profits. Starting in year n + 1, the revised GAAP assumptions and DAC schedule should be used in reporting income and in performing the source of earnings analysis discussed above.
What is a 97 contract?
What is FAS 60?
What are some examples of FAS 60?
What is FASB insurance?
What is the organization setting a country's accounting standards?
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What is a FAS 97 product?
FAS 97 defines investment contracts as policies "that do not subject the insurance enterprise to risks arising from policyholder mortality or morbidity." These contracts are to be accounted for as "interest-bearing or other financial instruments."
What FAS 91?
FAS 91: Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases.
What FAS 167?
FAS 167 means Statement Number 167 issued by the Financial Accounting Standards Board as same may be amended or interpreted from time to time. Sample 1Sample 2. FAS 167 means Financial Accounting Standards Board Statement of Financial Accounting Standards No. 167, as amended, modified or supplemented from time to time.
What FAS 115?
FAS 115: Accounting for Certain Investments in Debt and Equity. Securities. FAS 115 Summary. This Statement addresses the accounting and reporting for investments in equity. securities that have readily determinable fair values and for all investments in debt securities.
What replaced FAS 91?
FAS 91 is still in effect, and has been codified in the Accounting Standards Codification (ASC) and is commonly referred to as ASC 310–20.
What FAS 166?
FAS 166 means Financial Accounting Standards Board Statement of Financial Accounting Standards No. 166, as amended, modified or supplemented from time to time.
What is a VIE structure?
A variable interest entity (VIE) refers to a legal business structure in which an investor has a controlling interest despite not having a majority of voting rights. This is because the controlling interest is arranged via a contractual relationship rather than direct ownership.
How did the FASB define this in FIN 46 R )?
FIN 46, Consolidation of Variable Interest Entities, was an interpretation of United States Generally Accepted Accounting Principles published on January 17, 2003 by the US Financial Accounting Standards Board (FASB) that made it more difficult to remove assets and liabilities from a company's balance sheet if the ...
Deferred Acquisition Costs (DAC) Definition - Investopedia
Deferred Acquisition Costs - DAC: Typically used in the insurance industry, this is when a company defers the sales costs that are associated with acquiring a new customer over the term of the ...
Deferred Acquisition Cost (DAC) | Insurance Glossary Definition - IRMI
Looking for information on Deferred Acquisition Cost (DAC)? IRMI offers the most exhaustive resource of definitions and other help to insurance professionals found anywhere. Click to go to the #1 insurance dictionary on the web.
Deferred Acquisition Costs - DAC Amortization
DAC Amortization. Deferred Acquisition Costs (DAC) represents the “un-recovered investment” in the policies issued and are therefore capitalized as an intangible asset to match costs with related revenues.
.22 Deferred Acquisition Costs (DAC) - PwC
ASC 944-30 provides the definition of insurance acquisition costs that can be capitalized. ASC 944-30-25-1A includes four categories of acquisition costs that may be deferred; incremental direct costs of contract acquisition, other direct costs of contract acquisition, Other costs directly related to acquisition activities, and Direct-response advertising costs.
3.5 Subsequent accounting for deferred acquisition costs
The subsequent accounting for deferred acquisition costs (DAC), including the basis or method of DAC amortization, the amortization period, and recoverability assessment, is dependent on whether the contract is classified as short-duration, long-duration, or an investment contract.
Exploring the most simplified approach - Deloitte
Deferred acquisition cost Exploring the most simplified approach 4 In our simple example in table 2, if the useful lifetime were to increase by half a year after year one, but the ultimate value were
What is a 97 contract?
The FAS 97 category includes long-term insurance policies that were not covered under FAS 60. The contracts are termed as universal life-type insurance contracts. They are similar to term-life policies but are more flexible since they allow adjustment of their provisions. Most of the contracts developed and gained popularity after the FAS 60 standards were established.
What is FAS 60?
The FAS classifies insurance products in the following categories: 1. FAS 60. The FAS-60 category includes short-duration and long-duration contracts. The FAS 60 short-duration contract includes insurance covers for a specific short duration, the provisions of which can be adjusted by the user. An example is property insurance.
What are some examples of FAS 60?
Some examples are endowment contracts, title insurance contracts, and annuity contracts.
What is FASB insurance?
The FASB is the organization that establishes rules for accounting and financial reporting for companies and non-profit entities in the U.S.
What is the organization setting a country's accounting standards?
The organization setting a country’s accounting standards establishes certain principles on the accounting of economic transactions. The principles are known as Financial Accounting Standards (FAS). The FAS classifies financial and insurance products based on their tenure and terms.
What is a 97 contract?
The FAS 97 category includes long-term insurance policies that were not covered under FAS 60. The contracts are termed as universal life-type insurance contracts. They are similar to term-life policies but are more flexible since they allow adjustment of their provisions. Most of the contracts developed and gained popularity after the FAS 60 standards were established.
What is FAS 60?
The FAS classifies insurance products in the following categories: 1. FAS 60. The FAS-60 category includes short-duration and long-duration contracts. The FAS 60 short-duration contract includes insurance covers for a specific short duration, the provisions of which can be adjusted by the user. An example is property insurance.
What are some examples of FAS 60?
Some examples are endowment contracts, title insurance contracts, and annuity contracts.
What is FASB insurance?
The FASB is the organization that establishes rules for accounting and financial reporting for companies and non-profit entities in the U.S.
What is the organization setting a country's accounting standards?
The organization setting a country’s accounting standards establishes certain principles on the accounting of economic transactions. The principles are known as Financial Accounting Standards (FAS). The FAS classifies financial and insurance products based on their tenure and terms.
