The Statutory Accounting Principles (E) Working Group is responsible for developing and adopting substantive and nonsubstantive revisions to the Statements of Statutory Accounting Principles (SSAPs). Statutory accounting principles provide the basis for insurers to prepare financial statements for financial regulation purposes, and SSAPs are considered level 1 (highest authority) in the statutory accounting hierarchy.
Substantive statutory accounting revisions introduce original or modified accounting principles. Substantive revisions can be reflected in an existing SSAP or a new SSAP. Nonsubstantive statutory accounting revisions are characterized as language clarifications that do not modify the original intent of an SSAP.
Items for consideration by the Working Group can be submitted via a SAPWG Maintenance Agenda Submission Form (Form A) to the NAIC staff support listed on this web page.
The Emerging Accounting Issues (E) Working Group is responsible for responding to questions on the application, interpretation and clarification of statutory accounting principles. Additional information on this Working Group can be obtained via the following link:
- Maintain codified statutory accounting principles by providing periodic updates to the guidance that address new statutory issues and new U.S. generally accepted accounting principles (GAAP) pronouncements as they develop.—Essential and Ongoing
- At the discretion of the chair, comment on exposed GAAP pronouncements affecting financial accounting and reporting.—Essential
- Report its findings relative to these developing issues to the Accounting Practices and Procedures (E) Task Force.—Essential
- Contribute the perspective and expertise of the Working Group via the chair, or his/her representative, to the development of NAIC regulatory guidance for any security under review by the Invested Assets (E) Working Group of the Valuation of Securities (E) Task Force. (Upon notice that a class of securities has been placed under regulatory review, the chair of Statutory Accounting Principles (E) Working Group, or his/her representative, will be deemed a member of the Invested Assets (E) Working Group.)—Essential
- Provide comments on issues related to evaluating and/or implementing to International Financial Reporting Standards (IFRS) for possible U.S. statutory accounting use and provide input on the solvency modernization project as it relates to accounting and reporting issues.—Essential and Ongoing
- Adjust the Accounting Practices and Procedures Manual as needed to reflect the Valuation Manual requirements.—Essential
- Receive periodic reports on changes to the Valuation Manual that require coordination with the Accounting Practices and Procedures Manual. Coordinate as needed, in accordance with the established maintenance process.—Essential and Ongoing
- Coordinate with the Life Actuarial (A) Task Force on changes to the Accounting Practices and Procedures Manual related to the Valuation Manual VM-A Requirements and VM-C Actuarial Guidelines.—Essential and Ongoing
- Coordinate with the Life Actuarial (A) Task Force on development of an accounting smoothing mechanism to address reserve volatility.—Essential
Exposure Drafts Outstanding
Statutory Accounting Principles Working Group
Last Updated April 7, 2014
The deadline for comments on exposed items is May 8, 2014. The deadline for submission of new items is July 3, 2014.
Please address comment letters to Dale Bruggeman, Chair of the Statutory Accounting Principles (E) Working Group, and direct to firstname.lastname@example.org and email@example.com.
Paper/ SSAP No./ Appendix
|EXPOSURES WITH COMMENT DEADLINE OF May 8, 2014
||SSAP No. 35R
||Risk Sharing Provisions of the Affordable Care Act
||Nonsubstantive disclosures regarding the risk sharing provisions of the affordable care act programs (risk adjustment, reinsurance and risk corridors).
Issue Paper No. 148
|Affordable Care Act (ACA) Assessments
||Substantive revisions propose to move the Affordable Care Act (ACA) Section 9010 fee guidance from SSAP No. 35 R—Guaranty Fund and Other Assessments (SSAP No. 35R) into a separate SSAP.
||SSAP No. 26
SSAP No. 43R
|Disclosure for Structured Notes
Nonsubstantive revisions to SSAP No. 26 to9 incorporate a new “structured note” disclosure.
Nonsubstantive revisions to SSAP No. 43R to clarify the guidance in that SSAP pertains to structured securities, not structured notes.
||Issue Paper No. 99
||ASU 2013-12: Definition of a Public Business Entity, An Addition to the Master Glossary
||Nonsubstantive exposure rejects ASU 2013-12: Definition of a Public Business Entity, An Addition to the Master Glossary as not applicable to statutory accounting.
||SSAP No. 16R
||Inconsistent Audit Requirement in SSAP No. 16R
||Nonsubstantive revisions propose to make the capitalization policy disclosure consistent with other SSAPs.
||SSAP No. 19
SSAP No. 22
|ASU 2014-05, Service Concession Arrangements
||Nonsubstantive revisions propose to adopt with modification ASU 2014-05, Service Concession Arrangements to clarify that service concession arrangements are not within the scope of SSAP No. 22 and shall not be recognized as property, plant or equipment in SSAP No. 19. Comments are requested on the prevalence of these arrangements.
||SSAP No. 57
||SSAP No. 57—Title Insurance Premium Classifications
||Nonsubstantive revisions propose to replace the premium disclosure categories with five activity codes and expand the definitions of “type of rate” to coincide with previous changes to the title blank.
||SSAP No. 11
||SSAP No. 11 – Clarification of Adopted GAAP
||Nonsubstantive proposed revisions identify the adoption of paragraphs 6A and 7 of Accounting Principles Board Opinion (APB) 12, Omnibus Opinion – 1967 and to add guidance to reflect previously adopted GAAP. Comments are requested on existing disclosures.
||Various Issue Papers
||Reference SSAPs on Issue Papers
||Nonsubstantive revisions propose to add reference to the original SSAP that corresponds with the issue paper, as well as the current authoritative SSAP guidance for the related topic.
||SSAP No. 86
||ASU 2014-03, Derivatives and Hedging – Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps – Simplified Hedge Accounting Approach
||Nonsubstantive revisions propose to reject ASU 2014-03, Derivatives and Hedging – Accounting for Certain Receive-Variable, Pay-Fixed Interest Rate Swaps – Simplified Hedge Accounting Approach.
*Please forward all comment letters to firstname.lastname@example.org and email@example.com