Intermediate Accounting GAAP Discussion

The Statement of Financial Accounting Standard (SFAS) # 120 is a statement focusing on the accounting and reporting for mutual life insurance enterprises. The primary function of an insurance enterprise is to provide a means of economic protection for its customers from risks that may occur or are discovered in a specified period. The types of risks that may be incurred and covered by an insurance company are death, disability, damage to property, injury to others (in terms of liability), and interruptions to normal business activities. The primary focus of SFAS # 120 is to extend the gu…