Charges to Surplus
Is change in net deferred income tax a charge (like change in non admitted assets) or credit (like change in unrealized capital gains) to surplus - the wiki made me think that it was a credit (since it was not red), but after doing 2012 Fall Q16 I think it's a charge. Another note on 2012 Fall 16 is what are the test values for UPR?
Comments
We are discussing this. I will let you know.
The wiki is correct: it is a credit to surplus.
The Odomirok text explains "change in net deferred income tax" in terms of "deferred tax asset" (DTA) and "deferred tax liability" (DTL). This items is the change in (DTA less DTL) from point 0 to 1. It does not flow through Income, so it has to be added to surplus.
Solution of 2012.F.16 subtracts the change from surplus, so it goes counter to this explanation. It may have been an oversight, or it may somehow have been the correct way to do it back in 2012, before revisions were made to this text.
The three "tests" of UEPR and how they are used are explained in the wiki, in the NAIC.SSAP-65 section.