Is Hedge Accounting Right For You? Simplification in Policy May Lead You To Reconsider

Recent changes are coming for hedge accounting that will likely have a positive impact on your company’s hedging strategies. Currently, hedge accounting is very complex, and many companies avoid using it to avoid errors and misstatements. This could change, as hedge accounting has been simplified under The Accounting Standards Update ((ASU) No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities).

12 Days of SSAP (Unpaid Claims, Losses and Loss Adjustment Expenses)

ASU 2015-09: Insurance — Disclosures about Short-Duration Contracts was issued in May 2015 and makes improvements to existing disclosures under U.S. GAAP for insurance entities that issue short-duration contracts. ASU 2015-09 was rejected for statutory reporting, however, revisions were made to conform statutory disclosures not originally in SSAP No. 55 and SSAP No. 65.

12 Days of SSAP – SSAP No. 35R Guaranty Fund and Other Assessments

Guaranty Fund Assessments: Revisions document substantive changes adopted to SSAP No. 35R—Guaranty Fund and Other Assessments related to assessments for insolvencies of entities that wrote long-term care insurance. The revisions allow expected renewals for short-term contracts to be considered in the recognition of assets from accrued liability assessments, and require discounting for assessments and related assets.

12 Days of SSAP – Equity Method Revisions

SSAP No. 30, 48 & 97 were revised to allow for changing to the equity method to be applied prospectively, as of the date the investment qualifies for equity method accounting. The revisions eliminate the requirement to retroactively adjust the prior periods presented when a change in ownership or degree of influence qualifies for equity method accounting.