SAP Accounting for Unaffiliated Common Stocks
Unaffiliated common stocks are securities which represent a residual or subordinate ownership in a corporation, one that is not an affiliate of the insurance company. Unaffiliated common stocks are reported as assets on the statement of admitted assets, liabilities, surplus and other funds. Changes in fair value flow through surplus with no impact to the income statement until sold or impaired. Investments in subsidiaries, controlled or affiliated entities follow different guidance.
This OnDemand Learning session provides an overview of the accounting guidance under SSAP 30R and details which equity securities have to follow it, including key reporting requirements, examples of journal entries and various footnote disclosure requirements for common stock.