Inventory manipulations have played a key role in countless frauds. Back in the 1990s, executives at drugstore chain Phar-Mor manipulated the company’s financial statements in order to hide approximately $500 million in losses. Their strategy included overstating inventory balances at … Continued
Tax reform legislation that is currently in the works could potentially be enacted prior to the end of the year. If that happens, it will affect more than just your tax return. Companies that follow U.S. Generally Accepted Accounting Principles … Continued
ASU 2015-09 is about enhanced disclosure, and while it lays out certain requirements for presentation and provides examples of what the disclosure might look like, it also leaves a high degree of discretion to insurers to determine how and what information best meets with the spirit and intent of the standard.
Reinsurance agreements must contain the element of risk transfer where the reinsurer assumes significant insurance risk and may realize a significant loss from the transaction. However, there is an exception to these rules. In the following example, we demonstrate the “substantially all” exception to the essential elements of risk transfer.
The Financial Accounting Standards Board (FASB) has introduced a new way for financial institutions to recognize credit losses by way of ASU No. 2016-13. Beginning in 2020 for public companies and 2021 for private companies, the CECL model will result … Continued
The Franklin Circuit Court has issued an Order authorizing the Commissioner of the Kentucky Department of Insurance (“KDOI”) to liquidate Kentucky Health Cooperative, Inc. (“KYHC” or “co-op”). KYHC was placed into rehabilitation on October 29, 2015 with oversight of the day-to-day … Continued