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Journal Entry — AICPA Issues Revised Versions of Audit and Accounting Guides on Property and Liability Insurance Entities and Not-for-Profit Entities

Published on: May 10, 2013

The AICPA1 has issued revised versions of its Audit and Accounting Guides Property and Liability Insurance Entities and Not-for-Profit Entities. The AICPA’s Web site states that the update for the Property and Liability Insurance Entities guide includes:

  • "Premium deficiency calculations — New section provides thorough discussion, with a variety of examples provided for both the expected investment income and discounting approaches.
  • Captive insurance entities — New chapter that provides an overview, background and specific areas of interest.
  • Auditing loss reserves — Revised section that includes the clarified GAAS standards, and discussion of current approaches in practice today.
  • ASB Clarity Project — Reports on audited financial statements have been conformed to reflect the Clarity Project changes. Illustrations include the auditor’s report on general use financial statements of an insurance enterprise prepared in accordance with SAP, as well as an example auditor’s report under PCAOB standards.
  • Property and liability insurance — Expanded examples of disclosures needed to meet the requirements for GAAP compliance.
  • Legal and regulatory — Expert analysis of the current environment in which insurance entities are operating, and how it affects them."

In addition, the AICPA’s Web site states that the update for the Not-for-Profit Entities guide covers:

  • "[T]he unique accounting and auditing issues for not-for-profit entities
  • [R]eporting relationships with other entities
  • [R]eporting and measuring noncash gifts
  • [E]xpiration of donor-imposed restrictions
  • [P]rogram-related investments and microfinance loans
  • [P]rinciples for reporting net assets and related disclosures
  • [A]ccounting for contributions and receivables
  • [A]ccounting for reporting investments
  • [A]uditing net asset classification and revenue and expense recognition."


[1]    Financial Reporting Executive Committee, Auditing Standards Board, Property and Liability Insurance Entities Overhaul Guide Task Force, and Not-for-Profit Entities Task Force.

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