Proposed Statement of Statutory Accounting Principles No. 43

Sep 1st, 09
Revised, Loan-backed and Structured Securities (Proposed SSAP No. 43-R)

On August 5, 2009, the Statutory Accounting Principles Working Group (SAPWG) held a conference call to discuss the comment letters received on the proposed SSAP No. 43-R.  The specific issues discussed included revisions to the accounting guidance for other-than-temporary impairments, securities acquired in a transfer and beneficial interests.  In addition, the proposed effective date and new disclosure requirements were also discussed.

As a result of the conference call, the SAPWG made certain modifications to SSAP No. 43-R and has exposed the revised draft for public comment.  A conference call to discuss the revisions will be held the week of September 7, 2009.  It is important to note that the effective date and transition guidance is still pending.  The SAPWG has recently released a subsequent document that addresses these topics.

Proposed SSAP No. 43-R would supersede SSAP No. 98 – Treatment of Cash Flows When Quantifying Changes in Valuation and Impairments, an Amendment of SSAP No. 43 and paragraph 13 of SSAP No. 99 –  Accounting for Certain Securities Subsequent to an Other-Than-Temporary Impairment.