• AICPA - American Institute of Certified Public Accountants
  • FASB - Financial Accounting Standards Board
  • (IFRS) Foundation -
  • The CPA letter
  • Statement of Statutory Accounting Principles
    • Statement of Statutory Accounting Principles No. 51
      Life Contracts
    • [PDF-12p] - Statutory Issue Paper No. 56 - Universal Life-Type Contracts, Policyholder Dividends, and Coupons
      STATUS - Finalized March 16, 1998
      Original SSAP: SSAP No. 51; Current Authoritative Guidance: SSAP No. 51R

      • Flexible Premium Universal Life-Type Contracts
        • Alternative minimum reserves shall be required, if applicable, for flexible premium universal life-type contracts if the guaranteed maturity premium is less than the valuation net premium.

Other differences between statutory and generally accepted accounting principles have been recognized. Some of these

  • certain assets and investments recognized under GAAP are "non-admitted" under statutory accounting practices. 
    • Principal among these are certain loans and receivables, investments not authorized by statute or in excess of statutory limitations, and furniture and equipment.
  • income tax effects of differences between tax and book (statutory) accounting are not, in all cases, recognized under SAP.
    • With a few exceptions, accounting for income taxes generally is on an incurred basis.
  • the carrying value of subsidiaries is limited primarily due to restrictions in both the amount of and the amortization period for goodwill.
    • The deviations mandated or specified by the laws and regulations of the state department exercising jurisdiction result in a financial picture which presents the condition of the company or the results of its operations in conformity with the purposes and needs of the regulatory authority.
  • Financial statements prepared on the basis of generally accepted accounting principles meet the needs of a different contingency of users.  (p20-21)

1988-2, NAIC Proceedings