K-factor (actuarial)

In actuarial work relating to US GAAP accounting principles, the term K-factor refers to the ratio of the present value of deferrable expenses to the present value of estimated gross profits at issue. It is an important measurement used to manage the deferrals allowed in insurance accounting.

This article is issued from Wikipedia - version of the Tuesday, April 15, 2014. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.