Financial Accounting Standards Board (fasb) 115

Definition of "Financial accounting standards board (fasb) 115"

Douglas  Wolfe real estate agent

Written by

Douglas Wolfeelite badge icon

Keyes Company

New rule entitled "Accounting for Certain Investments in Debt and Equity Securities," which requires most fixed maturity investments to be listed on the INSURANCE COMPANY'S FINANCIAL STATEMENTS at MARKET VALUE beginning in 1994. This rule stipulates three categories of investment to be affected:

  1. Securities Available for Sale securities that are available for sale but are not considered securities held for trading.
  2. Securities Held to Maturity�securities that the insurance company has both the intent and ability to hold to maturity. Such securities would be listed on the company's financial statement at amortized cost.
  3. Trading Securities�securities that are bought for the purpose of trading in order to realize a profit. These securities are listed on the financial statements valued at market with any changes in the market value recorded on the income statement.
All of the above adjustments result in increases as well as decreases in book value and thus will have a direct effect on the numerous calculations that are a function of the book value, such as the return on equity.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Total premiums written by a ceding company minus premiums ceded to its reinsurer. ...

Coverage in the event a tunnel is damaged or destroyed. Written on an all risks basis, excluding perils of war, wear and tear, inherent defect, and nuclear damage. For example, this ...

Coverage that guarantees bond holders against default by a municipality. This form of financial guarantee was introduced in the early 1970s and became a runaway success. Municipalities ...

Legislation excluding commercial banks that are members of the Federal Reserve System from most types of investment banking activities. The coauthor of the Act, Senator Carter Glass of ...

Systems composed of personal computers linked by a file server. These computers share software as well as databases that enable the risk manager access to information in a quick and ...

Process of the continual reinsurance of a ceding company's portfolio of insurance policies. All premiums that have been ceded become earned premiums. ...

Specific date determined by the Internal Revenue Service on which a beneficiary has received a death benefit from an insurance company, an annuitant has received an income benefit, or a ...

Quarter credited, for retirement benefits under Social Security, when the worker's earnings exceed a minimum amount in a given quarter. Credited quarters are extremely important for fully ...

Coverage under a commercial workers compensation policy for situations in which an employee not covered under workers compensation laws could sue for injuries suffered under common law ...

Popular Insurance Questions