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

State plans that provide health insurance coverage for those who are unable to purchase medical insurance. Coverage is provided by a specially formed nonprofit-making pool comprised of all ...

Maximum sum of money that the insurance company will pay, during the time interval that the product liability insurance coverage is in effect, for all product liability-related claims ...

Standard property/casualty insurance premium set by a state rating bureau. States have responsibility for regulating insurers and making certain that rates are reasonable. To this end, ...

Account established by the insurance company specifically for beneficiaries of a life insurance policy where the beneficiary has the choice of leaving the death benefit on deposit in the ...

Case where an insurance company is placed by the state court under the control of the state insurance department. Claims are paid in the order filed until the insurance company's ability to ...

Health plans established by associations of hospitals and physicians to provide hospital service and care, and medical and surgical care. ...

Nominal interest rate minus the rate of inflation. ...

Statistical approach stating that if a series of samples is taken from a stable population, the distribution of the means (averages) of these samples will form a normal distribution whose ...

Apparent agreement that is not a valid contract. ...

Popular Insurance Questions