SAP Accounting for Preferred Stocks

  • Investments
  • Insurance
  • Intermediate

Preferred stocks are a form of stock that may have properties of both equity and debt securities. Preferred stock has a higher claim on assets and earnings than common stock and may be redeemable or perpetual. The value of preferred stock differs based on its NAIC designation and whether the insurance entity records an asset valuation reserve.

This OnDemand Learning session will provide an overview of key reporting requirements for preferred stocks, examples of journal entries, and various footnote disclosure requirements for preferred stock.