{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/470/944/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"470","topic_title":"Debt","subtopic":"470-944","subtopic_title":"Financial Services—Insurance","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"470-944-05-1","para":"05-1","html":"
This Subtopic provides guidance on accounting, financial statement presentation, and disclosure by the issuers of surplus notes. The term surplus notes is the most common term applied to these financial instruments. Some jurisdictions refer to these financial instruments as certificates of contribution, surplus debentures, or capital notes. The following are some general characteristics of surplus notes:
  1. a
    Approval of the issuance by the domiciliary state insurance commissioner
  2. b
    Stated maturity date in most but not all cases
  3. c
    Scheduled interest payments
  4. d
    Approval of the payment of principal and interest by the domiciliary state insurance commissioner
  5. e
    Nonvoting
  6. f
    Subordinate to all claims except those of shareholders for stock entities
  7. g
    Subordinate to all claims except policyholder residuals for mutual entities (after policyholder liabilities are settled)
  8. h
    No or limited acceleration rights other than for rehabilitation, liquidation, or reorganization of the insurer by a governmental agency
  9. i
    Proceeds from issuance in the form of cash, cash equivalent, or some other asset with a readily determinable fair value satisfactory to the domiciliary state insurance commissioner.
","snippet":"This Subtopic provides guidance on accounting, financial statement presentation, and disclosure by the issuers of surplus notes. The term surplus notes is the most common term applied to these financial instruments. Some…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fe28270641ede4e96427b1f48de647da05d3403c44c191c2ec6362063ccba897","downloaded_from":"2026-09-10T00:34:13.964Z","last_downloaded_at":"2026-09-10T00:34:13.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479040","source_sha256":"22c6a073f6c45f496542ac4f8c0c2ac35af4a677ba5b354b513372025a04816b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e22c046a977990c98f258aa34387f8a18985f60f3959e14db838e3094ec414ea","downloaded_from":"2026-09-10T00:34:13.964Z","last_downloaded_at":"2026-09-10T00:34:13.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479040","source_sha256":"22c6a073f6c45f496542ac4f8c0c2ac35af4a677ba5b354b513372025a04816b"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:107f863f46298a9044c2cfa7cd4d1c384c445722b3b00f902afe3b673bc5d341","downloaded_from":"2026-09-10T00:34:13.964Z","last_downloaded_at":"2026-09-10T00:34:13.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479040","source_sha256":"22c6a073f6c45f496542ac4f8c0c2ac35af4a677ba5b354b513372025a04816b"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:107f863f46298a9044c2cfa7cd4d1c384c445722b3b00f902afe3b673bc5d341","downloaded_from":"2026-09-10T00:34:13.964Z","last_downloaded_at":"2026-09-10T00:34:13.964Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479040","source_sha256":"22c6a073f6c45f496542ac4f8c0c2ac35af4a677ba5b354b513372025a04816b"}}