What is IMR in accounting?
What Does Interest Maintenance Reserve (IMR) Mean? An Interest Maintenance Reserve (IMR) is a reserve of funds and other assets that are held according to standard accounting principles in order to deal with fluctuations in the interest rate.
How is interest maintenance reserve calculated?
The calculation of the Interest Maintenance Reserve for purposes of Section 2.3(a)(i)(B) (the calculation of the Interest Maintenance Reserve created at the Effective Time as a direct result of the transactions contemplated by this Agreement) shall be equal to any net pre-tax realized capital gains multiplied by 65%.
What is IMR Reserve?
The interest maintenance reserve (IMR) captures all realized, interest-related capital gains and losses on fixed-income assets. The IMR amortizes these gains and losses into income over the remaining life of the investments sold.
What SSAP 97?
Description of Issue: SSAP No. 97—Investments in Subsidiary, Controlled and Affiliated Entities provides guidance for the various audit opinions that can be issued when an entity records certain investments utilizing the U.S. GAAP equity method of accounting.
What is transactional IMR?
Transaction IMR Amount means the amount of the IMR, calculated on an after-tax basis, that is created on the Closing Date as a direct result of the transfer of assets by the Ceding Company to the Reinsurer pursuant to Section 3.1(a), determined in accordance with SAP applicable to the Ceding Company. Sample 2.
What is an SCA filing?
Subsidiary, Controlled and Affiliated Entities (SCA) Filing Procedures – Filing a Sub-2 Form or an Appeal to a Sub-2 Form.
What is IMR and AVR?
The Section. describes in general terms, principles of the calculation for Interest Maintenance Reserve (IMR) for realized gains and losses from fixed income investments and the Asset Valuation Reserve. (AVR) on all invested assets held by a company. [ Refer to the NAIC’s Life and Health Annual.
What is revaluation reserve?
Revaluation reserve is an accounting term used when a company creates a line item on its balance sheet for the purpose of maintaining a reserve account tied to certain assets. This line item can be used when a revaluation assessment finds that the carrying value of the asset has changed.
What is NAIC Schedule D?
Schedules D, DA and DB help with the evaluation of yield and top-performing securities, as well as short- and long-term investment activity. Data is available for Property/Casualty, Life/Accident/Health, Health, and Title companies. The following list details a small portion of the wealth of information available.
What are SVO identified funds?
Recent work on Ref #2013-36 has centered around SVO- identified funds, which are funds that are approved by the Securities Valuation Office (SVO) to be classified as bonds or preferred stock.
What is mandatory securities valuation reserve?
Definition. Mandatory Securities Valuation Reserve — a reserve required of life insurers by state laws to offset declines in valuations of securities held as admitted assets.
What is the journal entry for revaluation?
Revaluation Reserve Journal Entries
| Particulars | Amount (Dr.) | Amount (Cr.) |
|---|---|---|
| (Being Profit on revaluation transferred to all partner’s capital A/c in old ratio) | ||
| All Partners’ Capital A/c (Individually) | xxx | |
| To Revaluation A/c | xxx | |
| (Being Loss on revaluation transferred to partner’s capital A/c in old ratio) |
What is a schedule BA?
Schedule BA assets encompass a wide range of long-term assets, including private equity, hedge funds, mineral rights, transportation equipment, surplus notes, secured and unsecured loans, and housing tax credits.
What is NAIC SVO?
ABOUT THE SVO. The NAIC’s Securities Valuation Office (SVO), one of the three groups within the Capital Markets & Investment Analysis Office, is responsible for the day-to-day credit quality assessment of securities owned by state regulated insurance companies.
What is NAIC designation?
NAIC Designations are the specific alphanumeric symbols in use by the NAIC SVO to denote a category of credit quality. When applied to Bonds and to derivative counterparties, the NAIC Designation appears without a prefix.
What is an AVR appraisal?
The term asset valuation review (AVR) refers to a process that establishes an estimate of the value of a failed bank’s assets. Banks may fail for a number of reasons. The most common occurrence is when the value of their assets drops below market value—well below their liabilities.
Is statutory reserve a free reserve?
No. The capital reserves, revaluation reserves, debenture redemption reserves, securities premium and statutory reserves do not form a part of free reserves.