What is the primary purpose of the SSAP?

The primary purpose of the Statement of Statutory Accounting Principles (SSAP) is to outline unique accounting practices and requirements. The SSAP is designed to establish standards that are appropriate for the regulatory environment of certain types of entities, particularly in the insurance industry. By framing these unique practices, SSAP ensures that financial statements portray a consistent and accurate picture of an entity’s financial health, taking into account the specific circumstances related to that sector. This standardization allows for better comparability across entities within the same industry, which is crucial for stakeholders who rely on this financial information for decision-making.

While supplementary information, fiscal policies, and general accounting regulations are important aspects of financial reporting, they do not encompass the specific focus that SSAP has on unique accounting practices that cater to the needs and regulatory frameworks of specialized industries.