An analysis of critical accounting estimate disclosures of pension assumptions, by Mark P. Bauman and Kenneth W. Shaw

9761565422_8da861e1c8_z

Authors: Mark P. Bauman and Kenneth W. Shaw

Journal: Accounting Horizons

ABSTRACT: Accounting for defined-benefit pension plans is complex, and reported financial statement amounts are significantly impacted by a myriad of assumptions. In its interpretative release FR-72 (2003), the SEC called for more informative and transparent Management Discussion and Analysis (MD&A) disclosure of critical accounting estimates (CAE), including those regarding pension plans. This paper uses a random sample of 147 firms with relatively large defined-benefit pension plans to analyze firms’ MD&A pension-related critical accounting estimate disclosures.

 

Get access to the rest of the article here: http://aaajournals.org/doi/abs/10.2308/acch-50823

 

Actuarial Standards of Practice Documents: The Complete Collection

Courtesy of the Actuarial Standards Board: Below are all current actuarial standards of practice adopted by the ASB. Note: Each ASOP has been updated to reflect the newly adopted Deviation language effective May 1, 2011. Click here to propose an idea for a Standard.

To obtain a hard copy of any current ASOP, please e-mail asbrequests@actuary.org.

 

Actuarial Standard of Practice No. 1Introductory Actuarial Standard of Practice

Actuarial Standard of Practice No. 2Nonguaranteed Charges or Benefits for Life Insurance Policies and Annuity Contracts

Actuarial Standard of Practice No. 3Continuing Care Retirement Communities

Actuarial Standard of Practice No. 4Measuring Pension Obligations

Actuarial Standard of Practice No. 4 [Revised]Measuring Pension Obligations and Determining Pension Plan Costs or Contributions

Actuarial Standard of Practice No. 5Incurred Health and Disability Claims

Actuarial Standard of Practice No. 6Measuring Retiree Group Benefit Obligations

Actuarial Standard of Practice No. 6 [Revised]Measuring Retiree Group Benefits Obligations and Determining Retiree Group Benefits Program Periodic Costs or Actuarially Determined Contributions

Actuarial Standard of Practice No. 7Analysis of Life, Health, or Property/Casualty Insurer Cash Flows

Actuarial Standard of Practice No. 8Regulatory Filings for Health Plan Entities

Actuarial Standard of Practice No. 8 [Revised]Regulatory Filings for Health Benefits, Accident and Health Insurance, and Entities Providing Health Benefits

Actuarial Standard of Practice No. 9Documentation and Disclosure in Property and Casualty Insurance Ratemaking, Loss Reserving, and Valuations

Actuarial Standard of Practice No. 10Methods and Assumptions for Use in Life Insurance Company Financial Statements Prepared in Accordance with U.S. GAAP

Actuarial Standard of Practice No. 11Financial Statement Treatment of Reinsurance Transactions Involving Life or Health Insurance

Actuarial Standard of Practice No. 12Risk Classification (for All Practice Areas)

Actuarial Standard of Practice No. 13Trending Procedures in Property/Casualty Insurance

Actuarial Standard of Practice No. 14When to Do Cash Flow Testing for Life and Health Insurance Companies

Actuarial Standard of Practice No. 15Dividends for Individual Participating Life Insurance, Annuities, and Disability Insurance

Actuarial Standard of Practice No. 16Actuarial Practice Concerning Health Maintenance Organizations and Other Managed-Care Health Plans

Actuarial Standard of Practice No. 17Expert Testimony by Actuaries

Actuarial Standard of Practice No. 18Long-Term Care Insurance

Actuarial Standard of Practice No. 19Appraisals of Casualty, Health, and Life Insurance Businesses

Actuarial Standard of Practice No. 20Discounting of Property/Casualty Unpaid Claim Estimates

Actuarial Standard of Practice No. 21Responding to or Assisting Auditors or Examiners in Connection with Financial Statements for All Practice Areas

Actuarial Standard of Practice No. 22Statements of Opinion Based on Asset Adequacy Analysis by Actuaries for Life or Health Insurers

Actuarial Standard of Practice No. 23Data Quality

Actuarial Standard of Practice No. 24Compliance with the NAIC Life Insurance Illustrations Model Regulation

Actuarial Standard of Practice No. 25Credibility Procedures Applicable to Accident and Health, Group Term Life, and Property/Casualty Coverages

Actuarial Standard of Practice No. 25 [Revised]Credibility Procedures

Actuarial Standard of Practice No. 26Compliance with Statutory and Regulatory Requirements for the Actuarial Certification of Small Employer Health Benefit Plans

Actuarial Standard of Practice No. 27Selection of Economic Assumptions for Measuring Pension Obligations

Actuarial Standard of Practice No. 27 [Revised]Selection of Economic Assumptions for Measuring Pension Obligations (Revised Edition)

Actuarial Standard of Practice No. 28Statements of Actuarial Opinion Regarding Health Insurance Liabilities and Assets

Actuarial Standard of Practice No. 29Expense Provisions in Property/Casualty Insurance Ratemaking

Actuarial Standard of Practice No. 30Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking

Actuarial Standard of Practice No. 31Documentation in Health Benefit Plan Ratemaking

Actuarial Standard of Practice No. 32Social Insurance

Actuarial Standard of Practice No. 33Actuarial Responsibilities with Respect to Closed Blocks in Mutual Life Insurance Company Conversions

Actuarial Standard of Practice No. 34Actuarial Practice Concerning Retirement Plan Benefits in Domestic Relations Actions

Actuarial Standard of Practice No. 35Selection of Demographic and Other Noneconomic Assumptions for Measuring Pension Obligations

Actuarial Standard of Practice No. 36Statement of Actuarial Opinion Regarding Property/Casualty Loss and Loss Adjustment Expense Reserves

Actuarial Standard of Practice No. 37Allocation of Policyholder Consideration in Mutual Life Insurance Company Demutualizations

Actuarial Standard of Practice No. 38Using Models Outside The Actuary’s Area of Expertise (Property and Casualty)

Actuarial Standard of Practice No. 39Treatment of Catastrophe Losses in Property/Casualty Insurance Ratemaking

Actuarial Standard of Practice No. 40Compliance with the NAIC Valuation of Life Insurance Policies Model Regulation with Respect to Deficiency Reserve Mortality

Actuarial Standard of Practice No. 41Actuarial Communications

Actuarial Standard of Practice No. 42Determining Health and Disability Liabilities Other Than Liabilities for Incurred Claims

Actuarial Standard of Practice No. 43Property/Casualty Unpaid Claim Estimates

Actuarial Standard of Practice No. 44Selection and Use of Asset Valuation Methods for Pension Valuations

Actuarial Standard of Practice No. 45The Use of Health Status Based Risk Adjustment Methodologies

Actuarial Standard of Practice No. 46Risk Evaluation in Enterprise Risk Management

Actuarial Standard of Practice No. 47Risk Treatment in Enterprise Risk Management

Actuarial Standard of Practice No. 48Life Settlements Mortality

 

Photo courtesy of: Bookish8952_BW via Flickr Creative Commons License