Us gaap and iris differences

By Joseph Nguyen Updated January 5, — 3: Some of differences between the two accounting frameworks are highlighted below. Intangibles The treatment of acquired intangible assets helps illustrate why IFRS is considered more principles-based.

Us gaap and iris differences

Arbitration Clause Language providing an alternative dispute resolution forum to resolve differences between the reinsurer and the ceding company without litigation.

As If A term used to describe the recalculation of prior years of loss experience to demonstrate what the underwriting results of a particular program would have been as if the proposed program had been inforce during that period. Assumed Portfolio Return Portfolio The transfer of in-force insurance liability by an insurer to a reinsurer by the payment of the unearned premiums reserve on those Us gaap and iris differences alone, or by the concurrent transfer of liability for outstanding losses under those policies by the payment of the outstanding loss reserve by the insurer to the reinsurer; the former is a premium portfolio, the latter a loss portfolio.

Assumption Certification Cut Through Clause, Strike-Through Clause Type of insolvency clause providing that in the event of insolvency of a ceding company, reinsurer will be liable for his share of the loss, but loss will be payable to the direct insured rather than liquidator.

Attachment Point The loss level specified in the terms of the reinsurance contract between the primary insurer and reinsurer; the amount at which excess reinsurance protection comes into effect; the retention under an excess reinsurance contract.

Authorization A quotation made by a reinsurer that is valid for a specified period of time; the insurer may bind coverage to be effective at any date within that period, provided the reinsurer is notified during that period.

Automatic Reinsurance Reinsurance of individual risks where the reinsurer assumes liability based entirely on the acceptance of the ceding company; a reinsurance contract that Us gaap and iris differences a combination of treaty and individual facultative reinsurance; reinsures a group of policies and often applies per policy, rather than per occurrence.

Backup Security Collateral Makes acceptable a reinsurer that would otherwise not meet the security criteria of the primary insurer. Basic Limits The minimum amounts of insurance for which it is the practice to quote premiums in liability insurance; additional amounts are charged for by the addition of certain percentages of the premium for the minimum basic limits.

Binding Agreement A reinsurance contract under which the reinsurer allows itself to be bound, within a specified grace period, on any risk that meets the criteria outlined in the contract. Blended Covers Prospective reinsurance that combines elements of both traditional and financial reinsurance to limit risk transfer, while allowing reinsurance accounting treatment under both GAAP and Statutory bases.

Buffer Layer Used primarily in facultative reinsurance to describe a reinsured layer of coverage between the maximum retention within the primary policy limit that the ceding company issues and the minimum limit s or deductible over which the excess or umbrella insurer will provided coverage.

Calendar Year Experience Reinsurance experience calculated by matching total value of all losses incurred during a given 12 month period with the premiums earned for same period. Cancellation Run-off Cancellation means that the liability of the reinsurer under policies, which became effective under the treaty prior to the cancellation date of such treaty, shall continue until the expiration date of each policy; Cut-off Cancellation means that the liability of the reinsurer under policies, which became effective under the treaty prior to the cancellation date of such treaty, shall cease with respect to losses resulting from accidents taking place on and after said cancellation date.

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Catastrophe Accumulation The amount of potential loss an insurance or reinsurance company may be exposed to in a single catastrophic loss event, such as an earthquake or a hurricane. Catastrophe Number Whenever a catastrophe occurs which produces losses within a prescribed period of time in excess of a certain amount, the amount of such losses is recorded separately from non-catastrophe losses, is numbered, and may be treated differently in the statistical experience records of the state used in setting rate levels Cede To transfer to a reinsurer all or part of the insurance risk written by a ceding company; the laying off of all or part of the risk relating to a policy, or group of policies to a reinsurer.

Ceding Company Cedent, Reinsured, Reassured The insurer which cedes all or part of insurance risk written to another. Certificate A short form documentation of a reinsurance transaction usually incorporating complete terms and conditions by reference.

Cession The amount of insurance risk transferred to a reinsurer by a ceding company; may be the whole or a portion of a single risk, defined policy or defined division of a policy as agreed.

Cessions Limit The capped amount of catastrophe-exposed business ceded to the reinsurance contract. Claims Cooperation Clause A clause found in many reinsurance contracts that stipulates that the ceding company agrees to consult and cooperate with the reinsurer on claims handling and settlement.

Claims-Made Reinsurance Loss Sustained Cover A type of reinsurance contract covering claims that are first made to the reinsurer during the term of contract, regardless of when they were sustained; a blend of retroactive and prospective reinsurance.

Concurrent Policies Where a ceding company buys more than one policy covering the same interest and the total amount insured is not in excess of the insurance value of the risk; the policies may be placed with the same or different companies; losses are pro-rated among the policies.

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Conflagration A massive fire which destroys many contiguous properties Conflagration Area A geographic territory in which many properties are subject to damage by a sweeping fire. Continuous Contract A reinsurance contract that remains in effect until both parties mutually agree to terminate it or one of the parties sends the other a notice of cancellation Contributing Excess Where there is more than one reinsurer sharing a line of insurance on a risk in excess of a specified retention, each such reinsurer shall contribute towards any excess loss in proportion to his original participation in such risk.Congratulations, New CPAs!

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Accident Year Experience. Reinsurance experience calculated by matching the total value of all losses occurring during a 12 .

IAS 39 prescribes rules for accounting and reporting of almost all types of financial instruments.

Us gaap and iris differences

Typical examples include cash, deposits, debt and equity securities (bonds, treasury bills, shares), derivatives, loans and receivables and many others.

Key Differences Between U.S. GAAP and IFRSs In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of.

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At an estimated cost of over $ billion, it.

Differences between IFRS and US GAAP | Difference Between