Accounting for Intangible Assets valued as part of Business Combination

[KristinK-SF]

hello,

We have a question about the accounting for Intangible Assets valued as part of a Business combination. We know that they are considered non-admitted assets. However, what line in the annual statement do you see most companies amortizing the expense through? Have you ever seen anyone amortize intangible assets as part of unrealized gain/loss, similar to how SSAP 68 says to amortize Goodwill under certain circumstances? If you have any insight into what other companies do and can share, we would appreciate it.

Thank you.

[Lisa]

Kristin

In conferring with my colleagues, we have not encountered the treatment you lay out in your question. We do not believe it is appropriate to amortize intangible assets in statutory accounting. You can refer to paragraph 4e in SSAP 20, Nonadmitted Assets. Also, SSAP 68, Business Combinations and Goodwill is a good reference.

Thank you,

Lisa Mullen
Regulatory Education Director