FASB ED clarifies GAAP's application to mutual insurers.An exposure draft issued by the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). clarifies that all applicable authoritative accounting pronouncements, including those of the FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). , must be followed by mutual life insurance companies that describe their financial statements as in conformity with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . Although the proposal is directed at mutual life insurers, the board intends it to apply broadly to all entities issuing financial statements purported to be in conformity with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . If adopted as a final interpretation, the proposal would be effective for calendar year 1993. One free copy of the ED, The Application of Generally Accepted Accounting Principles to Mutual Life Insurance Enterprises, is available until November 12, 1992, from the FASB Order Department, 401 Merritt 7, P.O. Box 5116, Norwalk, Connecticut 06856-5116. |
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