You will receive an overview of the statutory accounting for bonds as required by SSAP 26R.

This course focuses exclusively on the accounting for issuer obligations; loan-backed and structured securities are discussed separately in SSAP 43R.

The course covers the accounting for acquisitions and dispositions of bonds and terminology and concepts related to valuation and the calculation of interest income including amortized value, premium amortization, and discount accrual. Also discussed are the use of ratings, the concept of fair value, how to identify and record impairments and the required statutory disclosures.

Upon completion of this course, you will be able to:

• Apply the Statutory accounting and reporting guidance for bonds (excluding loan-backed and structured securities

Prerequisites/Advance Preparation: None required for this basic level self-study.

Course Content:

• Introduction
  • Industry Data/Significance
  • Reporting
  • Definition
• Accounting
  • Acquisitions and Dispositions
  • Cost, Par Value & Maturity
  • Interest
  • Premium, Discount & Related Amortization
  • Amortized Value
  • Callable Bonds
• Valuation – NAIC and SVO
  • CRP – Credit Rating Provider
  • NAIC Designation
  • Valuation Rules
  • AVR/IMR
  • Fair Value
  • Book/Adjusted Carrying Value
  • Unrealized Gains and Losses
• Impairments
  • Determination
  • Recording
  • Premiums and Discounts Subsequent to Impairment
• Interest Income
• Other Issues
  • Acquisition Costs
  • Prepayment Penalties
  • Origination Fees
  • Commitment Fees
  • Conversions and Exchanges
  • Other Statutory Guidance
• Disclosures
  • Annual Statement
  • Audited Statutory Financials