Statutory Accounting Principles Working Group 
Financial Condition (E) Committee
Accounting Practices and Procedures Task Force

The Statutory Accounting Principles Working Group has the responsibility of developing and proposing new Statements of Statutory Accounting principles (SSAPs). The SSAPs represent the top level of requirements in the statutory hierarchy of accounting requirements and are included in the NAIC Accounting Practices and Procedures Manual (AP&P Manual). New SSAPs will be developed periodically that: 1) address issues not covered by existing Statutory Accounting Principles (SAP) guidance; 2) amend existing SSAPs; or 3) supersede existing SSAPs.

The first step in developing new SSAPs will usually be the drafting of an Issue Paper (IP) containing summary conclusion, discussion and relevant literature sections. Public comment will be solicited on the IPs, and at least one public hearing will be held on an IP before it is converted to a SSAP. The SAPWG relies upon NAIC staff to perform research and drafting on new SSAPs and may enlist the assistance of interested parties with requisite technical expertise as needed.

Items for consideration by the SAPWG can be submitted via a Form A to NAIC staff support.

2009 Charges

• Maintain codified statutory accounting principles by providing periodic updates to the guidance that address new statutory issues and new GAAP pronouncements as they develop;
• At the discretion of the chair, comment on exposed GAAP Pronouncements affecting financial accounting and reporting;
• Report its findings relative to these developing issues to the Accounting Practices and Procedures (E) Task Force.
• Accumulate and summarize information from regulators, industry, auditors and others, on implementation issues related to transitioning to International Financial Reporting Standards (IFRS) for statutory reporting, as well as some of the more significant issues that would need to be considered in implementing such a change.
• Upon notice that a security has been placed under regulatory review, the Chair of the Statutory Accounting Principles (E) Working Group or his or her representative will be deemed a member of the Invested Asset (E) Working Group of the Valuation of Securities (E) Task Force. The Chair or his or her representative is charged with contributing the perspective and expertise of the regulatory group to the development of NAIC regulatory guidance for the security under review.

Comments Requested
Please forward comments to jtittle@naic.org or rmarcott@naic.org by October 28, 2009 on items exposed in accordance with the Fall National Meeting (below chart). Comments on SSAP No. 10R shall be received by rmarcott@naic.org and ddavelin@naic.org by November 19, 2009.

Exposure Drafts Outstanding
Statutory Accounting Principles Working Group
Last Updated November 6, 2009

SSAP No. 10R - The Financial Condition (E) Committee has exposed SSAP No. 10R--Income Taxes - Revised, A Temporary Replacement of SSAP No. 10 (SSAP No. 10R), which is an alternative language proposal to the version exposed September 24, 2009. This alternative language proposal intends to reflect the concepts adopted during the 2009 Fall National Meeting for the admittance of DTAs, but incorporates revisions to allow the operational application of the adopted concepts.

Comments on the exposed SSAP No. 10R alternative language proposal shall be submitted to the Financial Condition (E) Committee by November 19, 2009. A Financial Condition (E) Committee conference call will occur on Tuesday, November 24, 2009 at 12:00 p.m. (noon) Central to discuss comments received and consider adoption. Comments submitted shall be sent to the attention of Commissioner Alfred W. Gross, Chair of the Financial Condition (E) Committee, via the following NAIC staff: Robin Marcotte (rmarcott@naic.org) and Dan Daveline (ddavelin@naic.org).

Form A on SSAP No. 43R – Subsequent to the 2009 Fall National Meeting the SAPWG elected to expose revisions to SSAP No. 43R to reflect an SVO proposal to assign different ratings to RMBS securities based on investor carrying value. The attached Form A contains revisions to reflect the proposed SVO process as well as examples to understand the accounting and reporting process. Comments are due on this item November 19, 2009 to jtittle@naic.org and rmarcott@naic.org.

*Please forward all comment letters to jtittle@naic.org or rmarcott@naic.org.