Kamakura provides comprehensive, integrated functionality for forecasting financial results for the portfolio of assets and liabilities based on economic values, statutory and financial accounting values and tax-based valuation. KRM currently implements these requirements by providing alternative accounting treatment of the asset and liability positions.
When performing the multiperiod simulations for stochastic planning, KRM permits the user to select the accounting methodology appropriate to the exercise. The accounting methodology for each asset and liability instrument is specified by the financial product category associated with the instrument. This allows alternative accounting methodologies (fair economic value, statutory, FASB (GAAP), IFRS) to be applied to the income, expense, and book value calculations.
Kamakura advantage Stat/GAAP/Tax Accounting Treatments
- KRM clients can utilize the embedded multi-period forecasting functionality to project GAAP capital and statutory (risk-based) capital levels as well as comprehensive financial statement information on a tax-adjusted basis.
- KRM clients have the ability to project comprehensive financial statements (i.e., balance sheets, income statements, cash flow profiles) for virtually any user-specified horizon (e.g., from a 1 month to 1 year to 100 year horizon). KRM, specifically for insurance companies, can be used to project such forward looking analysis for a cross section of accounting and statutory considerations (i.e., for GAAP to economic to Statutory purposes).
- KRM fully supports more than a dozen accounting methods for the determination of income/expense, gains/losses, and other related balance sheet/income statement measures.