Insights: Article

NAIC 2018 Spring National Meeting Recap

By Sara Schumacher

April 05, 2018

Statutory Accounting Principles Working Group (SAPWG)

The SAPWG adopted the following revisions for incorporation into Accounting Practices and Procedures Manual. The revisions were effective immediately unless indicated.

Adopted the following substantive revisions to statutory accounting guidance:

  1. Statement Statutory Accounting Principle (SSAP) 9 Subsequent Events – Adopted INT 18-01: Updated Tax Estimates Under the Tax Cuts and Jobs Act to provide a limited-time (year end 2017 financial statements), limited-scope exception to Statement of Statutory Accounting Principles (SSAP) No. 9—Subsequent Events, to not require recognition of changes in reasonable estimates as Type I subsequent events after the issuance of statutory financial statements. The INT also provided instructions for reporting changes in deferred taxes for Note 9C.

Adopted the following nonsubstantive revisions to statutory accounting guidance:

  1. SSAP 41R – Surplus Notes and SSAP 97 – Investments in Subsidiary, Controlled and Affiliated Entities (SCAs): Appendix F Policy Statements- Adopts ASU 2016-13: Revisions clarify the existing concept restricting the double counting of surplus notes.
  2. SSAP No. 47—Uninsured Plans: Revisions reject U.S. generally accepted accounting principles (GAAP) related to revenue recognition:
    1. ASU 2014-09: Revenue from Contracts with Customers.
    2. ASU 2015-14: Revenue from Contracts with Customers, Deferral of the Effective Date.
    3. ASU 2016-08: Revenue from Contracts with Customers, Principal versus Agent Considerations.
    4. ASU 2016-10: Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing.
    5. ASU 2016-12: Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients.
  3. SSAP No. 68—Business Combinations and Goodwill: Revisions require additional disclosures on goodwill. A blanks proposal will request the disclosure for year-end 2018 reporting.
  4. SSAP No. 86—Derivatives: Revisions add individual contract disclosures for derivative contracts with financing premiums. A blanks proposal will consider Schedule DB changes for year-end 2018 reporting.
  5. SSAP No. 92—Postretirement Benefits Other Than Pensions and SSAP No. 102—Pensions: Revisions remove the level 3 fair value reconciliation disclosure for pension and other post-retirement plan assets.
  6. SSAP No. 103R—Transfers and Servicing of Financial Assets and Extinguishments of Liabilities: Revisions exclude cash equivalents, derivatives and short-term investments with credit assessments equivalent to a NAIC 1 or NAIC 2 designation from the wash sale disclosure and clarify that the wash sale disclosure should be in the financial statements for the period in which the security is sold.
  7. Appendix D—Nonapplicable GAAP Pronouncements: Revisions reject ASU 2017-06: Defined Benefit Pension Plans, Defined Contribution Pension Plans and Health and Welfare Benefit Plans – Master Trust Reporting as not applicable to statutory accounting.
  8. Appendix B—Interpretations: Revisions update the effective dates reflected in INT 02-22—Accounting for U.S. Terrorism Risk Insurance Program and INT 09-08—Accounting for Loans Received Under the Federal TALK Program. In addition, INT 09-08 was nullified as the TALF program was ended.

Latest Insights

November 16, 2018
If your business sells or operates in more than one state, it’s important to understand the concept of nexus. Depending on how you’re earning revenue, having nexus could impose a variety of taxes, which vary state to state. Learn more in our…
November 15, 2018
Until recently, many businesses weren’t overly concerned about sales tax. They knew they needed to collect and remit in the state in which they resided, but beyond that, their compliance burden was limited.
November 12, 2018
This insight explores what dealerships can expect from the proposed section 199A regulations under tax reform.
November 8, 2018
Are you a business taxpayer with annual gross receipts of $25 Million or less? If so, you may be eligible to take advantage of new Small Taxpayer Safe Harbors that could generate significant tax savings and simplify your tax returns in future years!
November 8, 2018
Considered the most significant tax code overhaul in over three decades, the Tax Cuts and Jobs Act passed in 2017 includes provisions affecting both individuals and businesses.
November 7, 2018
Recorded Webinar
State and local sales tax compliance is always evolving, making it important to stay up-to-date on changes affecting your tax liability and responsibilities. This session will cover what you need to know regarding the recently enacted state and…
November 7, 2018
“Why is my portfolio underperforming the market?” This question may be on your mind.
November 5, 2018
Identify your implementation methodology. There are four practical expedients available. We'll explore each option.
November 5, 2018
Deeper dive into ASU 2016 liquidity.