The current version also includes a provision that would change how a life insurer handles "deferred acquisition cost" (DAC) expenses, or the cost of acquiring life insurance customers, annuity customers, and purchasers of noncancelable
accident and health contracts.
The menu of optional riders available with the company's new disability product includes a noncancelable
policy rider, an own-occupation definition benefit rider and a catastrophic disability rider.
features can be particularly onerous on borrowers, so they are allowed to enter into a defeasance transaction.
FAS 13 specifies that if one of the following four criteria are met for a noncancelable
lease at the date of the lease agreement, the lease is to be accounted for as a capital lease: (i) the lease transfers ownership of the property to the lessee by the end of the lease term; (ii) the lease contains a bargain purchase option; (iii) the lease term is equal to 75% or more of the estimated economic life of the leased property; and (iv) the present value of the minimum lease payments (excluding executor costs) equals or exceeds 90% of the fair value of the leased property.
Under the 2013 ED, lease term would include all noncancelable
periods and all renewal or termination options in which the lessee has a significant economic incentive to exercise.
These rate fences imposed conditions on the lower fares, such as advance-purchase requirements, noncancelable
and nonrefundable terms, and Saturday night stay-over requirements.
Your coverage is Noncancelable
and Guaranteed Renewable to age 65.
Under this proposal, a private company would have the option not to recognize an intangible asset separate from goodwill, unless that asset arises from a noncancelable
contract or other legal right.
The term of the lease would be the stated noncancelable
term excluding any option periods, except if there is a significant economic incentive for an entity to exercise or not exercise the option.
Private companies that elect the alternative only have to recognize those intangible assets arising from noncancelable
contractual terms or those arising from other legal rights.
However, (i) the contract with a supplier has no impact on earnings before the actual sale unless the company decides to hedge the fair value risk for noncancelable
, fixed-price, long-term supply contracts; (ii) buying copper futures is covered by SFAS 133 as discussed above; and (iii) shares in the copper company are accounted at fair value, but unrealized gains and losses may or may not appear in earnings (SFAS 115).
Its range of innovative products--such as a 25-year noncancelable
warranty for solar arrays--has helped projects win financing even in the wake of the post-2008 credit crunch.