Statutory Accounting Principles Working Group s1

Ref #2013-05

Statutory Accounting Principles Working Group

Maintenance Agenda Submission Form

Form A

Issue: Nullified and Superseded SSAPs and INTs within the AP&P Manual

Check (applicable entity):

P/C Life Health

Modification of existing SSAP

New Issue or SSAP

Description of Issue: Currently all superseded or nullified SSAPs and INTs are included in Appendix H – Completely Superseded SSAPs and Nullified Interpretations in Volume III of the AP&P Manual. With the development of new SSAPs and the nullification of prior SSAPs and INTs, the amount of non-authoritative guidance included in Appendix H of the Accounting Practices and Procedures Manual has grown significantly. Due to the size constraints on the manual, it is proposed that the 100% superseded and nullified guidance be removed from the manual and be included on the Accounting Practices and Procedures Manual password protected updates webpage. By including on the password protected updates page, all who annually subscribe to the printed Accounting Practices and Procedures Manual will continue to have access to the superseded and nullified guidance for historical purposes. It is planned that reference will be included in the manual to identify the 100% superseded and nullified SSAPs and INTs that are included within the updates page. (A listing of the items that are currently in Appendix H that would be moved to the website in accordance with this proposal is included in Attachment A.) This proposal will not impact the inclusion of the superseded/nullified guidance within the Folio View CD. Items that are 100% superseded or nullified will continue to be presented in an Appendix H within the Folio View CD.

Existing Authoritative Literature:

· “How to Use this Manual” within the AP&P Manual includes the following:

Appendix H – Completely Superseded SSAPs and Nullified Interpretations

In October 2010, the Statutory Accounting Principles (E) Working Group adopted a proposal to remove 100% superseded SSAPs and nullified interpretations (INTs) from Volume I of the Manual and include these items within a new Appendix H in Volume III. Under this approach, only current authoritative guidance is located in Volume I of this Manual, while preserving the historical reference of previous authoritative SSAPs and INTs for accounting purposes.

Activity to Date (issues previously addressed by SAPWG, Emerging Accounting Issues WG, SEC, FASB, other State Departments of Insurance or other NAIC groups): None

Information or issues (included in Description of Issue) not previously contemplated by the SAPWG:

None

Staff Recommendation:

It is recommended that the Statutory Accounting Principles (E) Working Group move this item to the nonsubstantive active listing and expose nonsubtantive revisions to the Accounting Practices and Procedures Manual to document a new process to remove 100% superseded or nullified SSAPs and INTs from the printed manual, and include these items on the Accounting Practices and Procedures Manual password- protected updates page. With this process, all purchasers of the printed manual will continue to have access to these items for historical reference. This recommendation does not propose to change the process on the Folio View CD, and the 100% superseded or nullified SSAPs and INTs will continue to be included.

Staff Review Completed by:

Julie Gann – February 2013

Status:

On April 6, 2013, the Statutory Accounting Principles (E) Working Group moved this item to the nonsubstantive active listing and exposed nonsubstantive revisions to the Accounting Practices and Procedures Manual to document a process to remove 100% superseded or nullified SSAPs and INTs from the printed manual and include these items on the Accounting Practices and Procedures Manual password-protected updates Web page.

· “How to Use this Manual” within the AP&P Manual:

Appendix H – Completely Superseded SSAPs and Nullified Interpretations

In October 2010___ 2013, the Statutory Accounting Principles (E) Working Group adopted a proposal to remove 100% superseded SSAPs and nullified interpretations (INTs) from Volume I of the printed Manual and include these items on the Statutory Accounting Principles Working Group “Updates to the Accounting Practices and Procedures Manual” webpage. within a new Appendix H in Volume III. . By including on the password protected updates page, all who annually subscribe to the printed Accounting Practices and Procedures Manual will continue to have access to the superseded and nullified guidance for historical purposes. Under this approach, only current authoritative guidance is located in Volume I of this Manual, while preserving the historical reference of previous authoritative SSAPs and INTs for accounting purposes. The 100% superseded and nullified SSAPs and INTs will still be included within an Appendix H – Completely Superseded SSAPs and Nullified Interpretations within the AP&P Folio View C.D.

Staff Note – The printed version of the manual will continue to have a list the 100% superseded and nullified SSAPs and INTs in the Table of Contents with notation that they are available on the webpage. There will be no Appendix H in the printed manual.

G:\DATA\Stat Acctg\3. National Meetings\A. National Meeting Materials\2013\Spring - 4-2013\NM Exposures\13-05 - AP&P Nullified & Superseded Items.docx

Attachment A

Appendix H – Superseded SSAPs and Nullified Interpretations

Superseded SSAPs

No. / Title / Page /
8 / Pensions / H-8-1
10 / Income Taxes / H-10-1
10R / Income Taxes—A Temporary Replacement of SSAP No. 10 / H-10R-1
13 / Stock Options and Stock Purchase Plans / H-13-1
14 / Postretirement Benefits Other Than Pensions / H-14-1
18 / Transfers and Servicing of Financial Assets and Extinguishments of Liabilities / H-18-1
28 / Nonmonetary Transactions / H-28-1
31 / Derivative Instruments / H-31-1
33 / Securitization / H-33-1
45 / Repurchase Agreements, Reverse Repurchase Agreements and Dollar Repurchase Agreements / H-45-1
46 / Investments in Subsidiary, Controlled, and Affiliated Entities / H-46-1
75 / Reinsurance Deposit Accounting—An Amendment to SSAP No. 62R—Property and Casualty Reinsurance / H-75-1
77 / Real Estate Sales—An Amendment to SSAP No. 40—Real Estate Investments / H-77-1
79 / Depreciation of Nonoperating System Software —An Amendment to SSAP No. 16—Electronic Data Processing Equipment and Software / H-79-1
80 / Life Contracts, Deposit-Type Contracts and Separate Accounts, Amendments to SSAP No. 51—Life Contracts, SSAP No. 52—Deposit-Type Contracts, and SSAP No. 56—Separate Accounts / H-80-1
81 / Software Revenue Recognition / H-81-1
82 / Accounting for the Costs of Computer Software Developed or Obtained for Internal Use and Web Site Development Costs / H-82-1
85 / Claim Adjustment Expenses, Amendments to SSAP No. 55—Unpaid Claims, Losses and Loss Adjustment Expenses / H-85-1
87 / Capitalization Policy, An Amendment to SSAP Nos. 4, 19, 29 and 73 / H-87-1
88 / Investments in Subsidiary, Controlled and Affiliated Entities, A Replacement of SSAP No. 46 / H-88-1
89 / Accounting for Pensions, A Replacement of SSAP No. 8 / H-89-1
91R / Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities / H-91R-1
96 / Settlement Requirements for Intercompany Transactions, An Amendment to SSAP No. 25—Accounting for and Disclosures about Transactions with Affiliates and Other Related Parties / H-96-1
98 / Treatment of Cash Flows When Quantifying Changes in Valuation and Impairments, an Amendment of SSAP No. 43 / H-98-1
99 / Accounting for Certain Securities Subsequent to an Other-Than-Temporary Impairment / H-99-1

Nullified Interpretations

No. / Title / Page /
INT 99-01 / Accounting for Tax Benefits of Operating Losses and Tax Credits in Quasi-Reorganizations / H-99-01-1
INT 99-02 / Accounting for Collateral in Excess of Debt Principal / H-99-02-1
INT 99-03 / Accounting for Investment in Subsidiary, Controlled or Affiliated (SCA) Entities with Subsequent Downstream Investment in an Insurance Company / H-99-03-1
INT 99-04 / Recognition of Prepayment Penalties Upon Adoption of Codification / H-99-04-1
INT 99-10 / EITF 97-8: Accounting for Contingent Consideration Issued in a Purchase Business Combination / H-99-10-1
INT 99-14 / EITF 96-19: Debtor’s Accounting for a Modification or Exchange of Debt Instruments / H-99-14-1
INT 99-16 / EITF 97-11: Accounting for Internal Costs Relating to Real Estate Property Acquisitions / H-99-16-1
INT 99-17 / EITF 97-12: Accounting for Increased Share Authorizations in an IRS Section 423 Employee Stock Purchase Plan under APB Opinion No. 25 / H-99-17-1
INT 99-18 / EITF 97-13: Accounting for Costs Incurred in Connection with a Consulting Contract or an Internal Project That Combines Business Process Reengineering and Information Technology Transformation / H-99-18-1
INT 99-21 / EITF 98-7: Accounting for Exchanges of Similar Equity Method Investments / H-99-21-1
INT 99-22 / EITF 98-8: Accounting for Transfers of Investments That Are in Substance Real Estate / H-99-22-1
INT 99-23 / Disclosure of Premium Deficiency Reserves / H-99-23-1
INT 99-24 / Accounting for Restructuring Charges / H-99-24-1
INT 99-25 / Accounting for Capital Improvements / H-99-25-1
INT 99-26 / Offsetting Pension Assets and Liabilities / H-99-26-1
INT 99-27 / Nonadmitting Installment Receivables / H-99-27-1
INT 99-28 / Accounting for SCA Mutual Funds, Broker-Dealers and Similar Entities Under SSAP No. 46 / H-99-28-1
INT 99-29 / Classification of Step-Up Preferred Stock / H-99-29-1
INT 00-01 / Investment in Foreign SCA Entity / H-00-01-1
INT 00-02 / Accounting for Leveraged Leases Involving Commercial Airplanes Under SSAP No. 2 —Leases / H-00-02-1
INT 00-04 / Student Loan Insurance / H-00-04-1
INT 00-05 / Exemption to Merger Disclosure in SSAP No. 3 / H-00-05-1
INT 00-06 / EITF 97-14: Accounting for Deferred Compensation Arrangements Where Amounts Earned Are Held in a Rabbi Trust and Invested / H-00-06-1
INT 00-08 / EITF 98-5: Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios / H-00-08-1
INT 00-10 / EITF 98-14: Debtor’s Accounting for Changes in Line-of-Credit or Revolving-Debt Arrangements / H-00-10-1
INT 00-11 / EITF 98-15: Structured Notes Acquired for a Specified Investment Strategy / H-00-11-1
INT 00-12 / EITF 99-4: Accounting for Stock Received from the Demutualization of a Mutual Insurance Company / H-00-12-1
INT 00-21 / Disclose Requirement of SSAP No. 10 Paragraphs 17 & 18 / H-00-21-1
INT 00-22 / Application of SSAP No. 10 to Admissibility of Deferred Tax Assets / H-00-22-1
INT 00-23 / Reinsurance of Deposit Type Contracts / H-00-23-1
INT 00-27 / EITF 98-9: Accounting for Contingent Rent / H-00-27-1
INT 00-29 / EITF 99-17: Accounting for Advertising Barter Transactions / H-00-29-1
INT 00-30 / Application of SSAP No. 51 Paragraph 6 to Waiver of Deduction on Flexible Premium Universal Life Insurance Policies / H-00-30-1
INT 00-31 / Application of SSAP No. 55 Paragraph 13 to Health Entities / H-00-31-1
INT 01-01 / Application of SSAP No. 6 Paragraph 9.a. to de minimus Receivable Balances of Group Accident and Health Policies / H-01-01-1
INT 01-03 / Assets Pledged as Collateral or Restricted for the Benefit of a Related Party / H-01-03-1
INT 01-04 / SSAP Nos. 18 and 33 and Issues Surrounding Securitizations / H-01-04-1
INT 01-05 / Classification of Accrued Interest on Policy Loans / H-01-05-1
INT 01-07 / EITF 98-2: Accounting by a Subsidiary or Joint Venture for an Investment in the Stock of Its Parent Company or Joint Venture Partner / H-01-07-1
INT 01-10 / EITF 00-1: Investor Balance Sheet and Income Statement Display under the Equity Method for Investments in Certain Partnerships and Other Ventures / H-01-10-1
INT 01-11 / EITF 00-10: Accounting for Shipping and Handling Fees and Costs / H-01-11-1
INT 01-12 / EITF 00-14: Accounting for Certain Sales Incentives / H-01-12-1
INT 01-14 / EITF 00-16: Recognition and Measurement of Employer Payroll Taxes on Employee Stock-Based Compensation / H-01-14-1
INT 01-16 / Measurement Date for SSAP No. 8 Actuarial Valuations / H-01-16-1
INT 01-17 / Accounting for Nonqualified Retirement Plans, Nonvested Ancillary Benefits Within Retirement Plans, and Protected Benefits Such as Early Retirement Subsidies in Retirement Plans / H-01-17-1
INT 01-19 / Measurement of Deferred Tax Assets Associated with Nonadmitted Assets / H-01-19-1
INT 01-20 / Utilization of Tax Planning Strategies for the Admissibility of Deferred Tax Assets / H-01-20-1
INT 01-21 / SSAP Nos. 16R, 19, 68 and 79 – Reestablishment of Previously Expensed Software and Furniture, Fixtures and Equipment and Goodwill / H-01-21-1
INT 01-22 / Use of Interim Financial Statements in Computing Reporting Entity’s Investment in Subsidiary Under the GAAP Equity Method / H-01-22-1
INT 01-23 / Prepaid Legal Insurance Premium Recognition / H-01-23-1
INT 01-24 / Application of SSAP No. 46 and 48 to Certain Noninsurance Subsidiary, Controlled or Affiliated Entities / H-01-24-1
INT 01-26 / SSAP No. 51 and Reserve Minimum or Required Amount / H-01-26-1
INT 01-27 / Accounting Change versus Correction of Error / H-01-27-1
INT 01-28 / Margin for Adverse Deviation in Claim Reserve / H-01-28-1
INT 01-29 / SSAP No. 59 and Application to Credit Life / H-01-29-1
INT 01-32 / EITF 01-10: Accounting for the Impact of the Terrorist Attacks of September 11, 2001 / H-01-32-1
INT 01-33 / Extension of 9-Month Rule in SSAP No. 62R / H-01-33-1
INT 02-01 / Disclosure Requirements Under SSAP for Differences Between A-785 and Individual State Requirements as a Result of September 11 / H-02-01-1
INT 02-02 / SSAP No. 6 and Billing of Premium Before Effective Date / H-02-02-1
INT 02-03 / Accounting for the Impact of the Terrorist Attacks of September 11th on Commercial Mortgage Loans / H-02-03-1
INT 02-04 / Recognition of CARVM and CRVM Expense Allowances by the Assuming Reinsurer in a Modified Coinsurance Agreement / H-02-04-1
INT 02-05 / Accounting for Zero Coupon Convertible Bonds / H-02-05-1
INT 02-06 / Indemnification in Modeled Trigger Transactions / H-02-06-1
INT 02-07 / Definition of Phrase “Other Than Temporary” / H-02-07-1
INT 02-08 / Application of A-791 to YRT Reinsurance of a Block of Business / H-02-08-1
INT 02-09 / A-785 and Syndicated Letters of Credit / H-02-09-1
INT 02-10 / Statutory Audit Report Notes and the Reporting Requirements Related to Disclosures Containing Multiple Year Information / H-02-10-1
INT 02-11 / Recognition of Amounts Related to Earned but Unbilled Premium / H-02-11-1
INT 02-15 / EITF 00-11: Lessors’ Evaluation of Whether Leases of Certain Integral Equipment Meet the Ownership Transfer Requirements of FASB Statement 13 / H-02-15-1
INT 02-17 / EITF 01-13: Income Statement Display of Business Interruption Insurance Recoveries / H-02-17-1
INT 02-18 / Accounting for the Intangible Asset as Described in SSAP No. 8 Paragraphs 9.d.v. and 9.f. / H-02-18-1
INT 02-19 / EITF 01-1: Accounting for a Convertible Instrument Granted or Issued to a Nonemployee for Goods or Services or a Combination of Goods or Services and Cash / H-02-19-1
INT 02-20 / Due Date for Installment Premium Under an Agency Relationship / H-02-20-1
INT 02-21 / Accounting for Prepaid Loss Adjustment Expenses and Claim Adjustment Expenses / H-02-21-1
INT 03-01 / Application of SSAP No. 35 to the Florida Hurricane Catastrophe Fund / H-03-01-1
INT 03-03 / Admissibility of Investments Recorded Based on the Audited GAAP Equity of the Investee when a Qualified Opinion is Provided / H-03-03-1
INT 03-05 / EITF 01-07: Creditor’s Accounting for a Modification or Exchange of Debt Instruments / H-03-05-1
INT 03-16 / Contribution of Stock / H-03-16-1
INT 03-17 / Classification of Liabilities from Extra Contractual Obligation Lawsuits / H-03-17-1
INT 03-18 / Accounting for a Change in the Additional Minimum Liability in SSAPNo.8—Pensions (SSAP No. 8) / H-03-18-1
INT 04-01 / Applicability of New GAAP Disclosures Prior to NAIC Consideration / H-04-01-1
INT 04-02 / Surplus Notes Issued by Entities Under Regulatory Action / H-04-02-1
INT 04-03 / Clarification for Calculating the Additional Minimum Pension Liability Under SSAP No. 89—Accounting for Pensions, A Replacement of SSAP No. 8, paragraph 16.f. / H-04-03-1
INT 04-05 / Clarification of SSAP No. 5R Guidance on when a Judgment is Deemed Rendered / H-04-05-1
INT 04-07 / EITF 02-15: Determining Whether Certain Conversions of Convertible Debt to Equity Securities Are Within the Scope of FASB Statement No. 84 / H-04-07-1
INT 04-10 / EITF 02-18: Accounting for Subsequent Investments in an Investee after Suspension of Equity Method Loss Recognition / H-04-10-1
INT 04-12 / EITF 03-4: Determining the Classification and Benefit Attribution Method for a "Cash Balance" Pension Plan / H-04-12-1
INT 04-13 / EITF 03-5: Applicability of AICPA Statement of Position 97-2 to Non-Software Deliverables in an Arrangement Containing More-Than-Incidental Software / H-04-13-1
INT 04-15 / EITF 03-07: Accounting for the Settlement of the Equity-Settled Portion of a Convertible Debt Instrument That Permits or Requires the Conversion Spread to Be Settled in Stock (Instrument C of Issue No. 90-19) / H-04-15-1
INT 04-18 / EITF 00-21: Revenue Arrangements with Multiple Deliverables / H-04-18-1
INT 04-20 / EITF 01-08: Determining Whether an Arrangement Contains a Lease / H-04-20-1
INT 09-04 / Application of the Fair Value Definition / H-09-04-1