![]() ![]() The cornerstone of solvency measurement is financial reporting. The ultimate objective for regulators is to ensure an insurer is solvent as this is critical to ensure that policyholders, contract holders and other legal obligations are met when they come due and that companies maintain capital and surplus at all times and in such forms as required by statute to provide an adequate margin of safety. Statutory Accounting Principles are designed to 1) ensure consistent reporting among insurers, and 2) assist state insurance departments in the regulation of insurance companies. Permitted Accounting Practices: Accounting practices specifically requested by an insurer that depart from NAIC SAP and state prescribed accounting practices and have received approval from the insurer’s domiciliary state regulatory authority. ![]() Prescribed Accounting Practices: Accounting practices that are incorporated directly or by reference to state laws, regulations and general administrative rules applicable to all insurance enterprises domiciled in a particular state. However, the AP&P Manual does not preempt state legislative and regulatory authority, therefore state variations may occur in accordance with prescribed or permitted practices: SAP are detailed within the NAIC Accounting Practices and Procedures Manual (AP&P Manual). The three revision examinations at the end of this book are reproduced with the kind permission of the Institute of Chartered Accountants in Ireland.Most insurers authorized to do business in the United States and its territories are required to prepare statutory financial statements in accordance with statutory accounting principles (SAP). This book is suitable for students taking introductory financial accounting examinations of the professional accountancy bodies, third level accounting students or other students studying introductory financial accounting courses. Such a process should ensure greater understanding of the topic under discussion. Thus the tutor can indicate the correct solution and also explain or seek responses as to why other plausible answers are incorrect to the given statement. ![]() In addition, the book emphasises problem areas and attempts to help students avoid common mistakes in financial accounting. The topics covered in each chapter are logically sequenced so that as the student progresses through the chapter they build up their knowledge and skills in relation to that topic. ![]() Objective tests can also be an effective teaching tool. Large numbers of scripts can be objectively tested in a short space of time. Perhaps more importantly, correction of answers is entirely objective and comparatively easy. First, they allow the examiner to ask questions on every topic on the syllabus and thus test the candidates range of knowledge. MCQs have a number of advantages over traditional examination formats. This style of examination question has recently been adopted by the Institute of Chartered Accountants in Ireland and is also used in third level institutions. This allows the examiner to mark candidates' responses in an objective rather than subjective fashion. A multiple choice questionnaire (MCQ) style examination typically consists of 20/30 short statements, each of which is followed by a number of alternative answers. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |