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Proposed Statement Of Position On Accounting For Investments Of Stock Life Insurance Companies;Accounting For Investments Of Stock Life Insurance Companies; Exposure Draft (American Institute Of Certified Public Accountants), 1978, Aug. 4, American Institute Of Certified Public Accountants. Insurance Companies Committee
Proposed Statement Of Position On Accounting For Investments Of Stock Life Insurance Companies;Accounting For Investments Of Stock Life Insurance Companies; Exposure Draft (American Institute Of Certified Public Accountants), 1978, Aug. 4, American Institute Of Certified Public Accountants. Insurance Companies Committee
Exposure Drafts, Comment Letters, and Statements of Position
In 1972, the AICPA Insurance Companies Committee issued the industry audit guide, Audits of Stock Life Insurance Companies (referred to in this statement of position as "guide"). Part II of the guide, which discusses the application of generally accepted accounting principles, includes a section on the "Valuation of Investments and Recognition of Realized and Unrealized Gains (Losses) Thereon." That section (p. 89) outlines five acceptable methods of accounting for gains or losses on the sale of all equity securities except preferred stocks. The accounting standards division believes that it is not desirable to have five alternative accounting methods for accounting …