Title:	Accounting for European Insurance M&ATransactions: Fair Value of Insurance Contracts andDuplex IFRS/U.S. GAAP Purchase Accounting
Authors:	Karsten Paetzmann and Christine Lippl
Keywords:	purchase accounting; fair value; Solvency II; embedded value
Issue Date:	2013
Publisher:	The International Association for the Study of Insurance Economics
Description:	The purpose of this paper is to identify and analyse key questions with respect to a “fair value” of insurance contracts in an M&A transaction context, in the absence of specific IFRS guidance. Further, this paper aims to compare this fair value with value categories as discussed in the current IFRS Phase II process, the proposed Solvency II regulations and the practical actuarial concept of Market Consistent Embedded Value (MCEV). Finally, the paper discusses practical implications for an IFRS 3 purchase price allocation (PPA) and subsequent U.S. GAAP reporting, especially in the light of discretionary elements due to the lack of specific guidance on fair value measurement of insurance liabilities.
URI:	http://196.189.45.87:8080/handle/123456789/105403
Appears in Collections:	Accounting and Finance

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