One of the earliest interpretations adopted by the NAIC Statutory Accounting Principles Working Group (SAPWG) this year was INT 20-01: ASU 2020-04 – Reference Rate Reform, which was issued to provide statutory accounting guidance for the adoption of ASU 2020-04 – Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. SAPWG adopted ASU 2020-14 in every aspect other than areas where SAP has previously rejected GAAP or where statutory accounting is not applicable.
INT 20-01 applies to all SSAPs with contracts within the scope of ASU 2020-04, which allows for modifications due to reference rate reform and provides for the optional expedient to be accounted for as a continuation of the existing contract, while companies move to restructure contracts referenced to LIBOR or other rates being replaced.
Interprets the following SSAPs:
SSAP No. 15—Debt and Holding Company Obligations
SSAP No. 22R—Leases
SSAP No. 86—Derivatives
April 15, 2020, which corresponds to the ASU effectiveness period (March 12, 2020–December 31, 2022).
Deeper dive on this topic:
Click here to read more about this INT promulgation.