FV(loss reserve) vs SAP loss reserve vs GAAP loss reserve
Hi, could you please let me know what the difference is between those three things?
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Hi, could you please let me know what the difference is between those three things?
Comments
SAP loss reserve is seldom discounted, whereas GAAP is more lax in reserve discounting. This distinction is explained in the wiki in the answer for 2014.Fall.19. Fair value of loss reserve is a concept used in Purchasing GAAP, for company acquisitions. In addition to discounting of nominal reserve, it incorporates a risk adjustment. It is explained on Odomirok page 339.