IFRS 9
Which type of loss model does IFRS 9 use for financial instruments?
Expected Loss Model
Which country predominantly uses the US GAAP standard?
United States
What does NAIC stand for?
National Association of Insurance Commissioners
True or False? IFRS 9 is a strictly rules-based accounting standard.
False
Is US GAAP a rules-based or principles-based approach?
Rules-based approach
Which industry does the NAIC primarily provide guidance for?
The insurance industry
Is IFRS 9 a global standard or it is used predominantly in one country?
It's a global standard
What type of loss model is utilized by US GAAP?
Incurred Loss Model
Does the NAIC create regulations or guidelines?
Guidelines
When should credit losses be recognized under IFRS 9?
Earlier rather than later
When are credit losses usually recognized under US GAAP?
Later rather than earlier
How often does the NAIC update its models of laws and regulations?
Annually
Name one of the two factors that IFRS 9 bases its single classification and measurement approach for financial assets on?
Cash flow characteristics OR business model
What type of measurement model is used by US GAAP for financial instruments?
Mixed Measurement Model
What is the purpose of the NAIC's risk-based capital (RBC) formula?
To assess capital adequacy and ensure insurance companies can absorb significant losses