What does SOP 03 1 stand for?
SOP 03- 1 values the excess benefit by accruing assessments for those benefits based on the ratio of excess benefits to assessments (commonly referred to as the benefit ratio).
What are SOP 03 1 reserve?
Under SOP 03-1, the Company calculates an additional liability (the “SOP reserve”) for certain guaranteed benefits in order to recognize the expected value of death benefits in excess of the projected account balance over the accumulation period based on total expected assessments.
What are sales inducements?
Sales inducements are benefits provided to policyholders that are in excess of current market conditions or other similar contracts. The three main types of sales inducements are immediate bonuses, persistency bonuses, and enhanced crediting-rate bonuses.
What FAS 97?
FAS 97 defines investment contracts as policies “that do not subject the insurance enterprise to risks arising from policyholder mortality or morbidity.” These contracts are to be accounted for as “interest-bearing or other financial instruments.”
What FAS 114?
Creditors for Impairment of a Loan
114 (FAS 114), “Accounting by Creditors for Impairment of a Loan.” Under FAS 114, a loan is impaired when it is probable that the bank will be unable to collect all amounts due (including both interest and principal) according to the contractual terms of the loan agreement.
What FAS 91?
FAS 91: Accounting for Nonrefundable Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases.
What does ASC 310 stand for?
FAS ASC 310-30 Accounting for Purchased Loans with Deteriorated Credit Quality.
What FAS 115?
FAS 115 is the accounting standard that dictates fair value accounting for assets in GAAP financial statements. It isthe result of several issues that were of some concern to the FASB. The first issue was the concern on the part of regulators regarding the sale of debt instruments prior to maturity.
What is FAS 5 now called?
5: Accounting for Contingencies (FAS 5), the original FASB pronouncement, superseded by the substantively same FASB Accounting Standards Codification (ASC) subtopic 450 -20, Contingencies: Loss Contingencies, is a principal source of guidance on accounting for impairment in a loan portfolio under GAAP.
What is an ASC 310 20?
ASC 310-20 provides guidance on the recognition and measurement of nonrefundable fees and origination costs associated with all types of lending arrangements (e.g., consumer, mortgage, commercial, leases) other than those specifically scoped out in ASC 310-20-15-3 (e.g., fees and cost related to loans carried at fair …
What is an ASC 310 30?
ASC 310-30 (SOP 03-3) uses the acquirer’s “cash flow expected at acquisition” as the benchmark for calculating the yield (interest income) on the investment in the loan, as well as for purposes of determining whether the loan is impaired and how that impairment should be measured.