Change in Annual Statement Reporting of Money Market Mutual Fund Investments - Part 1

Submitted by Cynthia Braman on Wed, 04/19/2017 - 11:46am

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By Russell Simpson, Booke Instructor

Financial calculations.SSAP 2 was substantively revised and renamed SSAP 2R, Cash, Cash Equivalents, Drafts and Short-Term Investments in December 2016.  The key modification to this guidance is that all money market mutual funds will be reported as cash equivalents effective 12/31/17.  Another revision is that investments in money market mutual funds will be valued at fair value or net asset value (NAV) as a practical expedient with changes in fair value reported as an unrealized gain or loss with a direct credit or charge to surplus.

As a result of the SSAP 2R revisions, we expect the Blanks Working Group to adopt changes to the Annual Statement Instructions for Schedule E - Part 2 - Cash Equivalents which will add two new reporting categories (Exempt Money Market Mutual Funds - as Identified by SVO and All Other Money Market Mutual Funds) and a CUSIP Identification column (new Column 1).

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