EY was retained by the Casualty Actuarial Society (CAS) to write a new text on financial reporting and taxation as it affects reserving and statutory reporting for use in the CAS basic education process. The CAS had two key objectives for this text:
1. Replace a number of readings that existed on the CAS Syllabus of Basic Education as of 2011 with a single educational publication.
2. Refine the content of the syllabus material to focus on financial accounting and taxation topics that are of particular relevance to the property/casualty actuary.
The CAS specified that the new text would focus on the learning objectives contained within the syllabus as of 2011.
This publication has been prepared from an actuary’s lens, highlighting those areas of financial reporting and taxation deemed to be relevant by the CAS Syllabus Committee and the authors of this text. The learning objectives contained within the 2011 syllabus provided the underlying direction of the content contained herein. The Exam 6 learning objectives and examination material may change over time, and thus, the content of this publication may need to be updated.
This text does not represent the position of EY or the authors with respect to interpretations of accounting or tax guidance. Nor is this text intended to be a substitute for authoritative accounting guidance issued by the National Association of Insurance commissioners (NAIC), American Institute of Certified Public Accountants (AICPA), Financial Accounting Standards Board (FASB), Governmental Accounting Standards Board (GASB), Securities and Exchange Commission (SEC), Internal Revenue Service (IRS), Canadian Institute of Chartered Accountants (CICA), or any other regulatory body. Authoritative guidance from regulatory bodies trumps the writings contained herein. Furthermore, accounting standards are continuously evolving. As a result, readers of this text should be aware that the accounting standards referenced in this publication may have changed since the time of writing. The CAS may request that this publication be updated to reflect such changes.
While the authors of this publication have taken reasonable measures to verify references, content and calculations, it is possible that we may have inadvertently missed something. We would appreciate being informed of any inaccuracies so an errata sheet(s) may be issued and/or future editions of this publication may be corrected.
