Accounting Standard Updates
12 Days of SSAP: Restricted Cash – SSAP No. 69
Article reading time: 30 seconds
As the holidays approach, JLK Rosenberger is taking a new perspective on a holiday classic – the Twelve Days of Christmas. Rather than filling your head with turtle doves and gold rings, we are focusing on the latest changes to SSAP and how they will impact your insurance company in 2020 and beyond.
This article covers the latest on SSAP No. 69 – Statement of Cash Flow and ASU 2016-18 – Statement of Cash Flows: Restricted Cash.
Restricted Cash: SSAP No. 69 and ASU 2016-18
Your upcoming 2019 statutory annual statement and future filings involving the Cash Flow statement will require the incorporation of restricted cash or restricted cash equivalents to be included in the same cash flow statement line as cash and cash equivalents. SAPWG noted the disclosure requirements provided in SSAP No. 1- Accounting Policies, Risk & Uncertainties and Other Disclosures should provide ample detail about restricted assets and the handling within the statutory annual statement.
- ASU 2016-18 is effective for year-end 2019, with early adoption permitted
We expect this to have a more profound impact on GAAP than statutory filers. For more details, see our SSAP Chat article and video here.