Difference between revisions of "Odomirok.1-5-Intro"

Revision as of 23:01, 27 June 2024

Reading: Financial Reporting Through the Lens of a Property/Casualty Actuary - Chapters 1,2,3,4,5 - Introduction to Financial Reporting

Author: Kathleen C. Odomirok, FCAS, MAAA, Liam M. McFarlane, FCIA, FCAS, Gareth L. Kennedy, ACAS, MAAA, Justin J. Brenden, FCAS, MAAA, EY

BA Quick-Summary: Schedule P - Loss & LAE Reserves The first five chapters of the financial reporting text cover basic accounting principles. Financial reporting communicates a company's financial health and results, governed by standards like: Statutory Accounting Principles (SAP) Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS). Each framework has distinct rules and objectives such as: SAP's conservative approach for regulatory oversight GAAP's alignment with financial performance. Actuaries play a crucial role in estimating liabilities and ensuring compliance with these standards, essential for effective financial analysis and regulatory compliance.

Spend no more than 15 minutes on this reading. You probably already know these basic accounting concepts, but it won't hurt to review them.

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

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This is a good time to review SAP versus GAAP 8-9 from Odomirok.8-9-IS.

Note that this is also discussed in SAP versus GAAP 22-23 from Odomirok.22-23-GAAP.

The quiz below covers a few more basic accounting concepts.

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 * International Financial Reporting Standards (IFRS).
-Each framework has distinct rules and objectives, such as SAP's conservative approach for regulatory oversight and GAAP's alignment with financial performance. Actuaries play a crucial role in estimating liabilities and ensuring compliance with these standards, essential for effective financial analysis and regulatory compliance.
+Each framework has '''distinct rules and objectives''' such as:
+* SAP's conservative approach for regulatory oversight
+* GAAP's alignment with financial performance.
+'''Actuaries play a crucial role''' in estimating liabilities and ensuring compliance with these standards, essential for effective financial analysis and regulatory compliance.
 |}