Total Liabilities with respect to net UEP

zachboazzachboaz
edited April 2023 in Odomirok.22-23-GAAP

For the BattleQuiz problem modeled after Spring 2016 #15b, why do we only add the "net UEP" for CY/AY & not the UEP for CY/AY-1? The way I understand this table is both columns are amounts pertaining to the current CY but coming from either AY or AY-1. So if there is net UEP still remaining from AY-1 at the end of CY then how would this not be a liability as of year end for CY?

Comments

  • Staff - ACStaff - AC

    Your statement about the second table is false. Each column provides balances as of end of that CY, for all AYs. The first table, where net UEP is found, is not set up this way. You only have the balances as of end of 2014. That single number is the amount being asked for.

  • Staff - ACStaff - AC

    Sorry, your statement about the second table is correct.

    In the first table, for net UEP, you are given a single balance for all AYs, as of end of 2014.

  • zachboazzachboaz

    And what information that is given would tell you that the net UEP is a single balance for all AYs since you're given an amount in each column, the same way you are for for the other items. Not sure how I would come to that conclusion on my own without being explicitly told

  • Staff - ACStaff - AC

    In the first table of givens, net UEP shows up only once. It is not in the second table.

    I shouldn't have said "balance for all AYs." UEP is a CY concept; it is not based on AYs. Premium is associated with, but not based on, the accident year construct, because you do not assign accident dates to premium.

    The given is the balance of net UEP at 2014-end for all prior CYs.

  • mec06emec06e

    Hi you keep referring to the first table. But in the battle card labeled "SAP Liabilities" there is only 1 table.

    on the exam Spring 2016 #15 is organized very differently than the Battle Card. I believe that is where the confusion above is coming from (I had the same question)

    it's the Battle Card in Odomirok.22-23-GAAP quiz to calculate the Liabilities (in the full section of questions it is #31)

  • Staff - ACStaff - AC

    Ok, I see. I just had the same question from someone else, here's the answer:

    https://battleacts6us.ca/vanillaforum6us/discussion/224/spring-2016-15#latest

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