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years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected
to have a significant impact on our financial position, results of operations, or disclosures.
Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payment
s: In August 2016, the
FASB issued amendments that provide guidance on eight specific statement of cash flows classification issues. The
amendments are effective for public companies for fiscal years beginning after December 15, 2017, and interim periods
within those fiscal years. Early adoption is permitted for any interim or annual period. The adoption of this guidance is not
expected to have a significant impact on our financial position, results of operations, disclosures, or statements of cash
flows.
Financial Instruments - Credit Losses - Measurement of Credit Losses on Financial Instruments:
In June 2016,
the FASB issued amendments that require a financial asset (or a group of financial assets) measured on an amortized
cost basis to be presented net of an allowance for credit losses in order to reflect the amount expected to be collected on
the financial asset(s). The measurement of expected credit losses is amended by replacing the incurred loss impairment
methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a
broader range of reasonable and supportable information to inform about a credit loss. Credit losses on available-for-sale
debt securities will continue to be measured in a manner similar to current GAAP. However, the amendments require that
credit losses be presented as an allowance rather than as a writedown. Other amendments include changes to the
balance sheet presentation and interest income recognition of purchased financial assets with a more-than-insignificant
amount of credit deterioration since origination. The amendments are effective for public companies for fiscal years
beginning after December 15, 2019, including interim periods within those fiscal years. Companies may early adopt this
guidance as of the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We
have identified certain financial instruments in scope of this guidance to include certain fixed maturity securities, loans and
loan receivables and reinsurance recoverables (See Notes 3 and 8 for current balances of instruments in scope). We are
continuing to evaluate the impact of adoption of this guidance on our financial position, results of operations and
disclosures.
Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting:
In
March 2016, the FASB issued amendments which simplify several aspects for share-based payment award transactions,
including income tax consequences, classification of awards as either liability or equities, and classification on the
statement of cash flows. The amendments are effective for public companies for annual periods beginning after December
15, 2016, and interim periods within those annual periods. Early adoption is permitted for any interim or annual period.
The amendment requires prospective recognition of excess tax benefits and deficiencies in the income statement,
rather than in paid-in capital. As a result of applying this requirement, we estimate that recognition of excess tax benefits
will increase volatility in our statement of operations but will not have a significant impact on our statement of financial
position, operations, or disclosures. We continue to evaluate the impact of this guidance as estimates will vary from the
actual expense based on changes in actual share price.
The amendment also requires all excess tax benefits and tax deficiencies (including tax benefits of dividends on
share-based payment awards) to be recognized as income tax expense or benefit in the income statement. The guidance
requires modified retrospective transition for settlements on all outstanding awards (both historical and future) that did not
give rise to an excess benefit to be recorded through retained earnings on a cumulative-effect basis. We estimate that the
adoption of these amendments in the guidance will not have a significant impact on our financial position, results of
operations, or disclosures.
Additionally, the amendment requires that the minimum statutory tax withholding for all outstanding liability awards be
reclassified at the date of adoption to equity (assuming equity classification results from the guidance change), and record
a cumulative-effect adjustment to equity on a modified retrospective basis. We estimate that the adoption of these
amendments in the guidance will not have a significant impact on our financial position, results of operations, or
disclosures.
The guidance requires certain reclassifications of balances on the statement of cash flows to or from operating and
financing activities. The reclassification guidance will not have a significant impact on our statement of cash flows.
The amendment allows an entity to elect whether to use estimates of forfeitures, or to account for forfeitures as they
occur, using modified retrospective application. We estimate that the election and adoption of this amendment in the
guidance will not have a significant impact on our financial position, results of operations, or disclosures.
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