What does stat mean in accounting?

Stat is short for statutory accounting. This means following the Statutory Accounting Principles, or SAP, which is not a static document but a series of documents issued by the National Association of Insurance Commissioners, or NAIC.

What is the difference between GAAP and stat accounting?

The main difference between GAAP and STAT involves the treatment of assets for accounting purposes. All other assets are “admitted assets.” In the STAT method, accountants include only admitted assets when determining the company’s worth, whereas GAAP accountants include all assets.

What are stat financials?

Statutory Financial Statements means financial statements required to be filed by the Operating Subsidiaries with insurance regulatory authorities under applicable insurance regulatory laws, including the Annual Financial Statement and the Quarterly Financial Statements for each such Operating Subsidiary.

What are the generally accepted accounting principles?

Generally accepted accounting principles (GAAP) are varied but based on a few basic principles that must be upheld by all GAAP rules. These principles include consistency, relevance, reliability, and comparability. Consistency means that all information should be gathered and presented the same across all periods.

What are the statutory accounting principles?

The Statutory Accounting Principles (SAP) are a set of accounting regulations prescribed by the National Association of Insurance Commissioners (NAIC) for the preparation of an insurance firm’s financial statements.

What are statutory accounting systems?

The statutory accounting system is based on principles adopted as standards by this organization. Statutory accounting systems have some differences between states due to aspects of the particular state laws that govern their financial reporting regulations.

What is statutory reporting in accounting?

Statutory reporting is the mandatory submission of financial and non-financial information to a government agency. Each industry has its own set of laws and regulations (statues) that mandate reports. In many countries, International Financial Reporting Standards ( IFRS) has replaced country-specific Generally Accepted Accounting Principles…