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 February 13, 2014
Please address comment letters to Dale Bruggeman, Chair of the Statutory Accounting Principles (E) Working Group, and direct to email@example.com and firstname.lastname@example.org.
Paper/ SSAP No./ Appendix
|EXPOSURES WITH COMMENT DEADLINE OF March 5, 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).
|EXPOSURES WITH COMMENT DEADLINE OF Feb. 12, 2014
||SSAP Nos. 3 and 68
||Clarification of Merger Footnote
||Nonsubstantive revisions clarify that the disclosure exemption for mergers with shell entities does not change the Jan. 1 date to determine the cumulative effect in accounting principle.
||SSAP No. 97
||Clarification of Appendix B Included in SSAP No. 97
||Nonsubstantive revisions incorporate a reference to paragraph 21 for downstream holding companies.
||SSAP No. 86
||ASU 2013-10: Inclusion of the Fed Funds Swap Rate as a Benchmark Interest Rate
||Nonsubstantive revisions to adopt ASU 2013-10.These revisions define a benchmark interest rate and eliminate the prior restriction on using different benchmark rates for similar hedges.
||Issue Paper No. 99
||ASU 2012-04– Technical Corrections and Improvements
||Nonsubstantive revisions reject ASU 2012-04 as not applicable to statutory accounting.
Issue Paper No. 99
|AICPA SOP 09-1, Performing Agreed-Upon Procedures Engagements That Address the Completeness, Accuracy, or Consistency of XBRL-Tagged Data
||Nonsubstantive revisions to reject SOP 09-1 as not applicable to statutory accounting, and update the Preamble and Appendix D to clarify that as of Sept. 15, 2009, AICPA SOPs will no longer be reviewed for statutory accounting.
||Investment Classification Review
||Substantive project to review investment SSAPs and clarify definitions, scope, accounting methods and reporting guidance.
||SSAP No. 92 and SSAP No. 102
||ASU 2011-09: Compensation–Retirement Benefits–Multiemployer Plans (Subtopic 715-80): Disclosures about an Employer's Participation in a Multiemployer Plan
||Nonsubstantive revisions to adopt by reference ASU 2011-09 and incorporate limited additional disclosures for multiemployer plans. (Comments regarding the prevalence of multiemployer plans are requested as part of the exposure.)
*Please forward all comment letters to email@example.com and firstname.lastname@example.org