2021 Life and Health Insurance Entities - Audit and Accounting Guide
This resource brings you the practical accounting and auditing guidance you need to stay compliant.
Practical accounting and auditing guidance you need to stay compliant
Whether you’re a CPA performing audit engagements or management at an insurance entity, it is critical for you to understand and be current on the specialized accounting and regulatory requirements you’re subject to. This resource brings you the practical accounting and auditing guidance you need. The 2021 edition provides valuable background on the life and health insurance industry, products and regulatory issues, and the related transaction cycles that an insurance entity is involved with.
Key Features and Benefits
This guide was developed by the former Insurance Companies Committee and the Life Insurance Audit Guide Task Force. This edition of the guide has been modified by the AICPA staff to include certain changes necessary due to the issuance of authoritative guidance since the first edition and other revisions as deemed appropriate. Relevant guidance contained in standards issued through October 1, 2021 is included. This guide includes the following:
- Helpful information for developing audit plans of life insurance entities (especially auditing investments, inforce files, reinsurance, insurance revenues, liabilities for future policy benefits, income taxes and deferred acquisition costs)
- Appendixes that will help you understand industry-specific disclosures and credit losses.
- Implementation guidance for ASU No. 2018-12, Financial Services—Insurance (Topic 944) Targeted Improvements to the Accounting for Long-Duration Contracts. As additional accounting implementation papers are finalized, the online version will be updated. Please see the Insurance Expert Panel webpage for the status of the accounting implementation papers currently in development.
- Auditing content and illustrative audit reports have been updated for Statement on Auditing Standards (SAS) No. 134, Auditor Reporting and Amendments, Including Amendments Addressing Disclosures in the Audit of Financial Statements and related guidance.
- Statutory accounting content and illustrative reports have been updated due to revision of the NAIC’s Model Audit Rule Implementation Guide included in Appendix G of the Accounting Practices and Procedures Manual and other NAIC actions taken in 2020 and 2021.
- GAAP content has been updated for Accounting Standards Update (ASU) No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, including new excerpts from the Audit and Accounting Guide, Credit Losses.
- Business and industry financial managers need this product to stay up to date with current GAAP and statutory accounting relevant to life and health insurance entities.
- Small firms need this product to stay up to date on current GAAP and statutory accounting and audit guidance related to life and health insurance entities. This product also provides a good background of the life and health insurance industry, products and regulatory issues.
- Large firms need this product to serve as background on GAAP and statutory accounting and audit guidance related to life and health insurance entities.
- Users of life and health insurance entity financial statements need this product for background on the industry, and information on current GAAP and statutory accounting for life and health insurance entities.
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