GAAP Classifications of Debt Securities

  • Investments
  • Insurance
  • Basic

Insurance companies utilize a variety of debt securities. The valuation of these securities on the balance sheet depends on the investment classification as Held-to-Maturity, Trading Securities, or Available-for-Sale. Changes in the valuation at each reporting date are also dependent on these classifications and may be included in net income or as a component of accumulated other comprehensive income (AOCI).

This OnDemand Learning session will provide an overview of each type of debt security and their measurement on the balance sheet, including how changes in the initial measurement are reflected in the statement of income and other comprehensive income.