Quantify how statutory accounting treatment differs from GAAP, IFRS, and Solvency II.

Free CAS Exam 6-U.S. (Regulation and Financial Reporting) lesson in Financial Reporting, Taxation, and Professional Responsibilities of the Actuary. 17 min read, ~2,509 words.

Statutory accounting (SAP) serves solvency and is conservative: it nonadmits illiquid assets, expenses acquisition costs immediately, and puts the balance sheet and surplus first, with income a secondary focus. GAAP serves investors and going concern: it capitalizes deferred acquisition costs (DAC) and amortizes them, admits all assets, and emphasizes earnings...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• C5

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