CIA Accounting Standards

Question 1

CIA Accounting Standards - Define Book Value

Answer 1

market value, amortized value, or any other value consistent with Canadian GAAP

Question 2

CIA Accounting Standards - Define financial instrument

Answer 2

contract that creates an asset for one party and a liability or equity instrument for the other

Question 3

CIA Accounting Standards - Impact of classification of assets

Answer 3

effect portfolio discount rate, therefore effecting policy liabilities and DCAT analysis

Question 4

CIA Accounting Standards - Held-to-maturity treatment

Answer 4

same as before, accounted for on amortized cost basis; if tainted all in category available for sale for 2 years

Question 5

CIA Accounting Standards - available-for-sale treatment

Answer 5

changes in difference between fair and amortized cost flow through other comprehensive, otheres like invesment income and change in amortized cost NI

Question 6

CIA Accounting Standards - held-for-trading treatment

Answer 6

marked to fair value with gains and losses flowing though NI, have option of classifying anything as fair value

Question 7

CIA Accounting Standards - OSFI fair value option requirements

Answer 7

diminishes mismatch form measuring assets and liabs on different bases, risk management strategy and internal reporting done on fair value basis

Question 8

CIA Accounting Standards - Impact of classification on DCAT

Answer 8

adverse interest rate scenarios may have more impact on projected results

Question 9

CIA Accounting Standards - Measurement heirarchy for fair value

Answer 9

observable market prices, models consitent with participants, current cost, entity input model