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Statements of Position

1991

Insurance -- United States -- Auditing; Insurance

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Proposed Statement Of Position : Accounting For Foreign Property And Liability Reinsurance;Accounting For Foreign Property And Liability Reinsurance; Exposure Draft (American Institute Of Certified Public Accountants), 1991, Aug. 22, American Institute Of Certified Public Accountants. Reinsurance Auditing And Accounting Task Force Jan 1991

Proposed Statement Of Position : Accounting For Foreign Property And Liability Reinsurance;Accounting For Foreign Property And Liability Reinsurance; Exposure Draft (American Institute Of Certified Public Accountants), 1991, Aug. 22, American Institute Of Certified Public Accountants. Reinsurance Auditing And Accounting Task Force

Statements of Position

This proposed statement of position (SOP) provides guidance on how U.S. companies should account for property and liability reinsurance assumed from foreign insurance companies (foreign reinsurance). The periodic method should be used to account for foreign reinsurance premiums except when, because of local revenue recognition policies, the foreign ceding company cannot provide the information required by the assuming company to estimate both the ultimate premiums and the appropriate periods of recognition in accordance with U.S. generally accepted accounting principles. In such circumstances, the open year method should be used. The periodic and open year methods are not interchangeable ...