The CARES Act includes numerous relief provisions to assist businesses and individuals impacted by the COVID-19 pandemic. Some of the more significant tax provisions intended to improve the cash flow and liquidity needs of corporate taxpayers, including insurers, are related to modifications to the carryback rules of NOLs, accelerated recovery of AMT credits, bonus depreciation eligibility for Qualified Improvement Property, and others. These provisions may also have financial reporting implications that need to be considered for US GAAP and statutory purposes.
Some financial reporting areas to consider include the following:
- Realizability of deferred tax assets and valuation allowance assessments
- Undistributed earnings and the indefinite reimbursement assertion
- Statutory admissibility calculations under SSAP 101, paragraph 11a in light of the expanded NOL carryback provision
Deeper dive on this topic:
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