Difference between revisions of "Income Statement"
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Before doing anything else, you need to know the '''frameworks''' that companies use for accounting. | Before doing anything else, you need to know the '''frameworks''' that companies use for accounting. | ||
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+ | :{| class="wikitable" | ||
+ | |- '''Question''': what is <u>SAP</u> and what is <u>GAAP</u> | ||
+ | |} | ||
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+ | :* Both are <u>frameworks</u> of accounting principles/rules for reporting ''financial transactions'' and ''operating results'': | ||
+ | :: ==> '''SAP''' is prescribed by an insurer’s domiciliary state | ||
+ | :: ==> '''GAAP''' is used by public & private companies ''(insurers & non-insurers)'' | ||
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Revision as of 21:07, 26 December 2018
Contents
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BattleTable
Based on past exams, the main things you need to know (in rough order of importance) are:
- surplus: calculation of surplus, surplus changes, non-I/S surplus changes & reasons for surplus changes
- statutory income: calculation of statutory income
- basic accounting terms and concepts: (SAP = Statutory Accounting Principles)
- => balance sheet, income statement, assets, liabilities, revenue, expenses, reinsurance
- calculation of of bond values
reference part (a) part (b) part (c) part (d) E (2018.Spring #9) define:
- insurer recoverabledefine:
- insurer payabledefine:
- reinsurer funds helddefine:
- reinsurance provisionE (2018.Spring #10) statutory income:
- calculateexpense allocation:
- impact on profitabilityexpense allocation:
- actuary's involvementE (2017.Fall #9) statutory income:
- calculateusers & purpose:
- B/S & I/S 1E (2017.Fall #10) surplus:
- calculate surplusE (2017.Fall #13) calculate:
- value of bondsregulator concerns:
- regarding assetsE (2016.Fall #14) surplus:
- calculate surplusfinancial health:
- evaluateE (2015.Fall #15) surplus:
- non-I/S surplus changessurplus:
- total surplus changesurplus:
- reasons for surplus chgE (2014.Fall #12) surplus:
- calculate surplussee NAIC.IRIS see Odomirok.10-Notes E (2013.Fall #19) SAP:
- identify errorssurplus:
- calculate surplusreinsurance:
- reasons to purchaseregulator concerns:
- fair valueE (2012.Fall #14) surplus:
- impact on surplussee Odomirok.19-RBC
- 1 B/S stands for Balance Sheet, and I/S stands for Income Statement.
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In Plain English!
If you've taken a university course in accounting then you're in good shape you're familiar with the layout of financial statements. If you haven't, it's not a great problem, but it might be a little harder to understand the big picture.
SAP versus GAAP
Before doing anything else, you need to know the frameworks that companies use for accounting.
- Both are frameworks of accounting principles/rules for reporting financial transactions and operating results:
- ==> SAP is prescribed by an insurer’s domiciliary state
- ==> GAAP is used by public & private companies (insurers & non-insurers)
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BattleCodes
Memorize:
Conceptual:
Calculational: