Difference between revisions of "FASB.944"
Jump to navigation
Jump to search
| (15 intermediate revisions by 2 users not shown) | |||
| Line 1: | Line 1: | ||
| − | + | '''Reading''': Accounting Standards Codification 944, “Financial Guarantee Insurance Contracts,” 2011, Section 15, Scope and Scope Exceptions, paragraphs: | |
| + | * 1-2 | ||
| + | * 5-7 | ||
| + | * 34-35 | ||
| + | * 41-44 | ||
| + | * 49-54 | ||
| − | + | Candidates are not responsible for material relating to long-duration contracts and/or life insurance. | |
| + | '''Author''': Financial Accounting Standards Board | ||
| + | |||
| + | [https://www.battleacts6us.ca/vanillaforum6us/categories/fasb-944<span style="font-size: 12px; background-color: lightgrey; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 0px;">'''Forum'''</span>] | ||
| + | |||
| + | {| class='wikitable' style='background-color: navajowhite; | ||
| + | |- | ||
| + | || '''BA Quick-Summary''': <span style="color: green;>'''FASB 944 - Financial Guarantee Contracts'''</span> | ||
| + | |||
| + | This paper provides guidance from FASB regarding <u>Financial Guarantee</u> insurance contracts. | ||
| + | |||
| + | |} | ||
| + | |||
| + | ==Study Tips== | ||
| + | |||
| + | Virtually all of the content in this reading is covered in other reinsurance readings. The only thing you might want to learn is the definition of ''financial guarantee'' insurance. | ||
==BattleTable== | ==BattleTable== | ||
| − | + | * ''this reading has not been tested on any exam from the year 2012 to Fall 2019 when the exams stopped being published.'' | |
| − | |||
| − | |||
| − | |||
: {| class="wikitable" style="width: 1000px;" | : {| class="wikitable" style="width: 1000px;" | ||
| Line 16: | Line 33: | ||
|- | |- | ||
| − | | | + | || ''no prior questions'' |
|| | || | ||
|| | || | ||
| Line 23: | Line 40: | ||
|} | |} | ||
| − | + | ||
| + | [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=FASB&suffix=944§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span> | ||
| + | |||
==In Plain English!== | ==In Plain English!== | ||
| + | A <u>financial guarantee</u> is a non-cancellable indemnity bond backed by an insurer to guarantee investors that principal and interest payments will be made. Or in simpler terms: | ||
| − | + | * it covers a lender from the liability resulting from the borrower defaulting on a loan | |
| − | |||
| − | |||
| + | The reading draws a distinction between short and long-duration contracts. A <u>short-duration</u> contracts is characterized by: | ||
| − | + | * providing insurance protection for a <u>fixed period</u> of <u>short</u> duration ''(pretty darn obvious!)'' | |
| + | * enabling insurer to <u>cancel</u> the contract or <u>adjust</u> the provision at the end of the contract period | ||
| + | <u>Financial reporting</u> of a reinsurance contract depends on whether the contract is: | ||
| − | + | * short or long-duration | |
| + | * prospective or retrospective | ||
| − | == | + | [https://www.battleacts6us.ca/FC.php?selectString=**&filter=both&sortOrder=natural&colorFlag=allFlag&colorStatus=allStatus&priority=importance-high&subsetFlag=miniQuiz&prefix=FASB&suffix=944§ion=all&subSection=all&examRep=all&examYear=all&examTerm=all&quizNum=all<span style="font-size: 20px; background-color: lightgreen; border: solid; border-width: 1px; border-radius: 10px; padding: 2px 10px 2px 10px; margin: 10px;">'''Full BattleQuiz]'''</span> <span style="color: red;">'''You must be <u>logged in</u> or this will not work.'''</span> |
Latest revision as of 10:49, 27 June 2024
Reading: Accounting Standards Codification 944, “Financial Guarantee Insurance Contracts,” 2011, Section 15, Scope and Scope Exceptions, paragraphs:
- 1-2
- 5-7
- 34-35
- 41-44
- 49-54
Candidates are not responsible for material relating to long-duration contracts and/or life insurance.
Author: Financial Accounting Standards Board
| BA Quick-Summary: FASB 944 - Financial Guarantee Contracts
This paper provides guidance from FASB regarding Financial Guarantee insurance contracts. |
Study Tips
Virtually all of the content in this reading is covered in other reinsurance readings. The only thing you might want to learn is the definition of financial guarantee insurance.
BattleTable
- this reading has not been tested on any exam from the year 2012 to Fall 2019 when the exams stopped being published.
reference part (a) part (b) part (c) part (d) no prior questions
Full BattleQuiz You must be logged in or this will not work.
In Plain English!
A financial guarantee is a non-cancellable indemnity bond backed by an insurer to guarantee investors that principal and interest payments will be made. Or in simpler terms:
- it covers a lender from the liability resulting from the borrower defaulting on a loan
The reading draws a distinction between short and long-duration contracts. A short-duration contracts is characterized by:
- providing insurance protection for a fixed period of short duration (pretty darn obvious!)
- enabling insurer to cancel the contract or adjust the provision at the end of the contract period
Financial reporting of a reinsurance contract depends on whether the contract is:
- short or long-duration
- prospective or retrospective
Full BattleQuiz You must be logged in or this will not work.
