<PAGE> 1
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Statements of Operations
<TABLE>
<CAPTION>
Aggressive International
For the six months or period ended Growth Growth Growth
June 30, 1996 Sub-Account Sub-Account Sub-Account
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 212,032 $ 136,430 $ 18,666
Capital Gains 63,573 33,259 50,445
- ---------------------------------------------------------------------------------------------------------------------
EXPENSES:
Mortality and expense risk charges 46,179 51,314 9,281
- ---------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 229,426 118,375 59,830
- ---------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
securities transactions 496,653 706,506 111,656
Change in unrealized appreciation/(depreciation) 386,075 547,202 297,749
- ---------------------------------------------------------------------------------------------------------------------
NET GAIN/(LOSS) ON INVESTMENTS 882,728 1,253,708 409,405
- ---------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations $1,112,154 $1,372,083 $469,235
=====================================================================================================================
</TABLE>
(1) Period May 1, 1996 (inception) to June 30, 1996
Statements of Assets, Liabilities and Equity Accounts
<TABLE>
<CAPTION>
Aggressive International
Growth Growth Growth
As of June 30, 1996 Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS:
Shares 930,024.324 857,957.172 232,877.377
========================================================================================================================
Investments at cost $ 11,800,756 $ 14,132,894 $ 2,937,550
========================================================================================================================
Investments at net asset value $ 13,578,355 $ 16,215,390 $ 3,309,188
Accrued transfers from/(to) depositor - net 79,421 37,517 39,985
- ------------------------------------------------------------------------------------------------------------------------
Total Assets 13,657,776 16,252,907 3,349,173
- ------------------------------------------------------------------------------------------------------------------------
LIABILITIES: -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 13,657,776 $ 16,252,907 $ 3,349,173
========================================================================================================================
EQUITY ACCOUNTS:
Policyowners' equity:
Units 909,075.6163 847,397.4653 234,549.5961
========================================================================================================================
Unit Value $ 15.023806 $ 19.179792 $ 14.279166
========================================================================================================================
Value $ 13,657,776 $ 16,252,907 $ 3,349,173
- ------------------------------------------------------------------------------------------------------------------------
Depositor's equity:
Units -- -- --
========================================================================================================================
Unit Value -- -- --
========================================================================================================================
Value -- -- --
- ------------------------------------------------------------------------------------------------------------------------
Total Equity $ 13,657,776 $ 16,252,907 $ 3,349,173
========================================================================================================================
</TABLE>
See Notes to Financial Statements
1 Janus Retirement Advantage June 30, 1996 Semiannual Report
<PAGE> 2
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Statements of Operations
<TABLE>
<CAPTION>
Worldwide Flexible Short-Term Money
For the six months or period ended Growth Balanced Income High-Yield Bond Market
June 30, 1996 Sub-Account Sub-Account Sub-Account Sub-Account(1) Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Dividends $ 126,820 $ 58,753 $ 81,624 $2,124 $27,534 $60,587
Capital Gains 63,172 1,693 892 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES:
Mortality and expense risk charges 53,302 14,466 7,859 200 4,729 9,735
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income/(loss) 136,690 45,980 74,657 1,924 22,805 50,852
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN/(LOSS) ON INVESTMENTS:
Net realized gain/(loss) from
securities transactions 1,648,196 84,868 85,696 262 (2,631) --
Change in unrealized appreciation/
(depreciation) 758,141 96,759 (147,088) 2,712 (24,036) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET GAIN/(LOSS) ON INVESTMENTS 2,406,337 181,627 (61,392) 2,974 (26,667) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 2,543,027 $227,607 $ 13,265 $4,898 $(3,862) $50,852
====================================================================================================================================
</TABLE>
(1) Period May 1, 1996 (inception) to June 30, 1996
Statements of Assets, Liabilities and Equity Accounts
<TABLE>
<CAPTION>
Worldwide Flexible Short-Term Money
Growth Balanced Income High-Yield Bond Market
As of June 30, 1996 Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Shares 960,775.135 306,666.853 172,754.753 21,448.740 112,948.157 3,301,076.430
====================================================================================================================================
Investments at cost $ 15,138,589 $ 3,654,647 $ 1,880,454 $ 215,637 $ 1,133,109 $ 3,301,076
====================================================================================================================================
Investments at net asset value $ 17,505,323 $ 4,195,203 $ 1,851,931 $ 218,348 $ 1,108,021 $ 3,301,076
Accrued transfers from/(to)
depositor - net 105,871 14,825 (133) (4) (30,095) (82,290)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Assets 17,611,194 4,210,028 1,851,798 218,344 1,077,927 3,218,786
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES: -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Net Assets $ 17,611,194 $ 4,210,028 $ 1,851,798 $ 218,344 $ 1,077,927 $ 3,218,786
====================================================================================================================================
EQUITY ACCOUNTS:
Policyowners' equity:
Units 970,282.7528 299,099.9690 151,447.3394 18,761.4221 98,957.1206 306,149.7839
====================================================================================================================================
Unit Value $ 18.150579 $ 14.075656 $ 12.227340 $ 10.269506 $ 10.892867 $ 10.513761
====================================================================================================================================
Value $ 17,611,194 $ 4,210,028 $ 1,851,798 $ 192,670 $ 1,077,927 $ 3,218,786
- ------------------------------------------------------------------------------------------------------------------------------------
Depositor's equity:
Units -- -- -- 2,500.0000 -- --
====================================================================================================================================
Unit Value -- -- -- 10.269506 -- --
====================================================================================================================================
Value -- -- -- 25,674 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Equity $ 17,611,194 $ 4,210,028 $ 1,851,798 $ 218,344 $ 1,077,927 $ 3,218,786
====================================================================================================================================
</TABLE>
See Notes to Financial Statements
Janus Retirement Advantage June 30, 1996 Semiannual Report 2
<PAGE> 3
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
Statements of Changes in Equity Accounts
<TABLE>
<CAPTION>
For the year or period ended Growth Aggressive Growth International Growth
June 30, 1996 and December 31, 1995 Sub-Account Sub-Account Sub-Account
- --------------------------------------------------------------------------------------------------------------------------
1996 1995 1996 1995 1996 1995
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 229,426 $ 151,976 $ 118,375 $ 81,172 $ 59,830 $ (9,119)
Net gain/(loss) on investments 882,728 1,711,251 1,253,708 2,000,003 409,405 334,926
- --------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in equity
accounts resulting from operations 1,112,154 1,863,227 1,372,083 2,081,175 469,235 325,807
- --------------------------------------------------------------------------------------------------------------------------
EQUITY TRANSACTIONS:
Proceeds from units sold 2,545,670 3,802,593 3,443,691 5,063,374 1,334,703 375,984
Less cost of units redeemed;
Administrative charges 5,900 -- 6,547 -- 808 --
Surrender benefits 117,779 298,389 235,597 291,278 16,525 10,046
Death Benefits 235 -- 236 -- 236 --
- --------------------------------------------------------------------------------------------------------------------------
Increase from equity transactions 2,421,756 3,504,204 3,201,311 4,772,096 1,317,134 365,938
- --------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in equity accounts 3,533,910 5,367,431 4,573,394 6,853,271 1,786,369 691,745
Depositor's equity contribution/(redemption) (1,452) -- (1,849) -- (32,804) --
EQUITY ACCOUNTS:
Beginning of period 10,125,318 4,757,987 11,681,361 4,828,090 1,595,608 903,863
- --------------------------------------------------------------------------------------------------------------------------
End of period $13,657,776 $10,125,318 $16,252,907 $11,681,361 $3,349,173 $1,595,608
==========================================================================================================================
<CAPTION>
For the year or period ended Worldwide Growth Balanced
June 30, 1996 and December 31, 1995 Sub-Account Sub-Account
- -----------------------------------------------------------------------------------------------
1996 1995 1996 1995
- -----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 136,690 $ (25,970) $ 45,980 $ 29,605
Net gain/(loss) on investments 2,406,337 1,991,028 181,627 557,839
- -----------------------------------------------------------------------------------------------
Net increase/(decrease) in equity
accounts resulting from operations 2,543,027 1,965,058 227,607 587,444
- -----------------------------------------------------------------------------------------------
EQUITY TRANSACTIONS:
Proceeds from units sold 4,182,188 2,622,007 748,595 728,290
Less cost of units redeemed;
Administrative charges 5,964 -- 2,333 --
Surrender benefits 205,588 225,540 44,976 195,419
Death Benefits -- -- 229 --
- -----------------------------------------------------------------------------------------------
Increase from equity transactions 3,970,636 2,396,467 701,057 532,871
- -----------------------------------------------------------------------------------------------
Net increase/(decrease) in equity accounts 6,513,663 4,361,525 928,664 1,120,315
Depositor's equity contribution/(redemption) (1,666) -- (1,362) --
EQUITY ACCOUNTS:
Beginning of period 11,099,197 6,737,672 3,282,726 2,162,411
- -----------------------------------------------------------------------------------------------
End of period $17,611,194 $11,099,197 $4,210,028 3,282,726
===============================================================================================
</TABLE>
(1) Period May 1, 1995 (inception) to December 31, 1995
(2) Period May 1, 1996 (inception) to June 30, 1996
Statements of Changes in Equity Accounts
<TABLE>
<CAPTION>
For the year or period ended Flexible Income High-Yield Short-Term Bond Money Market
June 30, 1996 and December 31, 1995 Sub-Account Sub-Account Sub-Account Sub-Account
- ---------------------------------------------------------------------------------------------------------------------------------
1996 1995 1996(2) 1996 1995 1996 1995(1)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 74,657 $ 94,856 $ 1,924 $ 22,805 $ 65,091 $ 50,852 $ 45,763
Net gain/(loss) on investments (61,392) 260,909 2,974 (26,667) 69,868 -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in equity
accounts resulting from operations 13,265 355,765 4,898 (3,862) 134,959 50,852 45,763
- ----------------------------------------------------------------------------------------------------------------------------------
EQUITY TRANSACTIONS:
Proceeds from units sold (554,646) 1,200,811 188,446 (77,435) (140,677) 1,960,195 1,698,398
Less cost of units redeemed;
Administrative charges 870 -- -- 547 -- 323 --
Surrender benefits 40,398 13,433 -- 51,560 1,218,839 491,098 43,939
Death benefits 224 -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Increase from equity transactions (596,138) 1,187,378 188,446 (129,542) (1,359,516) 1,468,774 1,654,459
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase/(decrease) in equity accounts (582,873) 1,543,143 193,344 (133,404) (1,224,557) 1,519,626 1,700,222
Depositor's equity contribution/(redemption) (1,197) -- 25,000 (1,082) -- (26,062) 25,000
EQUITY ACCOUNTS:
Beginning of period 2,435,868 892,725 -- 1,212,413 2,436,970 1,725,222 --
- ----------------------------------------------------------------------------------------------------------------------------------
End of period $1,851,798 $2,435,868 $218,344 $1,077,927 $1,212,413 $3,218,786 $1,725,222
==================================================================================================================================
</TABLE>
(1) Period May 1, 1995 (inception) to December 31, 1995
(2) Period May 1, 1996 (inception) to June 30, 1996
See Notes to Financial Statements
3 Janus Retirement Advantage June 30, 1996 Semiannual Report
<PAGE> 4
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
SELECTED PER UNIT DATA AND RATIOS*
<TABLE>
<CAPTION>
For each year or period ended December 31 Growth Aggressive Growth
and the period ended June 30, 1996. Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
1996 1995 1994 1993(1) 1996 1995 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 13.61 $ 10.55 $ 10.35 $10.00 $ 17.21 $ 13.62 $ 11.81 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment income/(loss) .28 .26 (.04) .03 .16 .15 .08 .01
Net realized and unrealized
gain/(loss) on investments 1.13 2.80 .24 .32 1.81 3.44 1.73 1.80
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from operations 1.41 3.06 .20 .35 1.97 3.59 1.81 1.81
- ------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE,
END OF PERIOD $ 15.02 $ 13.61 $ 10.55 $10.35 $ 19.18 $ 17.21 $ 13.62 $11.81
====================================================================================================================================
Total return** 10.37% 29.07% 1.90% 3.50% 11.43% 26.41% 15.35% 18.05%
====================================================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period $13,657,776 $10,125,318 $4,757,887 $1,035 $16,252,907 $11,681,361 $4,828,090 $1,181
Ratio of net investment
income/(loss) to average
net assets*** 3.80% 2.08% (0.35%) 0.29% 1.75% 1.00% 0.63% 0.05%
====================================================================================================================================
<CAPTION>
For each year or period ended December 31 Worldwide Growth Balanced
and the period ended June 30, 1996. Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
1996 1995 1994 1993(1) 1996 1995 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 15.14 $ 11.99 $ 11.91 $10.00 $ 13.26 $ 10.72 $ 10.72 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment income/(loss) .16 (.04) (.10) .02 .17 .13 .05 .08
Net realized and unrealized
gain/(loss) on investments 2.85 3.19 .18 1.89 .65 2.41 (.05) .64
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from operations 3.01 3.15 .08 1.91 .82 2.54 -- .72
- ------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE,
END OF PERIOD $ 18.15 $ 15.14 $ 11.99 $11.91 $ 14.08 $ 13.26 $ 10.72 $10.72
====================================================================================================================================
Total return** 19.85% 26.29% 0.68% 19.10% 6.12% 23.73% 0.00% 7.20%
====================================================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period $17,611,194 $11,099,197 $6,737,672 $1,191 $4,210,028 $ 3,282,726 $2,162,411 $1,072
Ratio of net investment
income (loss) to average
net assets*** 1.95% (0.32)% (0.86)% 0.19% 2.44% 1.08% 0.51% 0.79%
====================================================================================================================================
<CAPTION>
For each year or period ended December 31 Flexible Income Short-Term Bond
and the period ended June 30, 1996. Sub-Account Sub-Account
- ------------------------------------------------------------------------------------------------------------------------------------
1996 1995 1994 1993(1) 1996 1995 1994 1993(1)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 12.15 $ 9.90 $ 10.07 $10.00 $ 10.90 $ 10.04 $ 10.03 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment income/(loss) .44 .57 .41 .10 .21 .40 .50 .10
Net realized and unrealized
gain/(loss) on investments (.36) 1.68 (.58) (.03) (.22) .46 (.49) (.07)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income/(loss) from operations .08 2.25 (.17) .07 (.01) .86 .01 .03
- ------------------------------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE,
END OF PERIOD $ 12.23 $ 12.15 $ 9.90 $10.07 $ 10.89 $ 10.90 $ 10.04 $10.03
====================================================================================================================================
Total return** 0.62% 22.81% (1.74)% 0.70% (0.08)% 8.61% 0.08% 0.30%
====================================================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period $ 1,851,798 $ 2,435,868 $ 892,725 $1,007 $ 1,077,927 $ 1,212,413 $2,436,970 $1,003
Ratio of net investment
income/(loss) to average
net assets*** 7.42% 5.53% 4.69% 1.03% 3.77% 4.11% 5.35% 1.04%
====================================================================================================================================
<CAPTION>
For each year or period ended December 31 International Growth
and the Period ended June 30, 1996. Sub-Account
- -------------------------------------------------------------------------------------------------------------
1996 1995 1994(2)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 11.80 $ 9.66 $ 10.00
- -------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment income/(loss) .32 (.06) (.05)
Net realized and unrealized
gain/(loss) on investments 2.16 2.20 (.29)
- -------------------------------------------------------------------------------------------------------------
Total income/(loss) from operations 2.48 2.14 (.34)
- -------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 14.28 $ 11.80 $ 9.66
=============================================================================================================
Total return** 20.99% 22.11% (3.35)%
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period $3,349,173 $1,595,608 $903,863
Ratio of net investment income/(loss)
to average net assets*** 4.85% (0.66)% (0.59)%
=============================================================================================================
<CAPTION>
For each year or period ended December 31 High-Yield
and the period ended June 30, 1996. Sub-Account
- -------------------------------------------------------------------------------------------------------------
1996(4)
- -------------------------------------------------------------------------------------------------------------
<S> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 10.00
- -------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment income/(loss) .10
Net realized and unrealized
gain/(loss) on investments .17
- -------------------------------------------------------------------------------------------------------------
Total income/(loss) from operations .27
- -------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 10.27
=============================================================================================================
Total return** 2.70%
=============================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period $ 218,344
Ratio of net investment income(loss)
to average net assets*** 5.96%
=============================================================================================================
<CAPTION>
For each year or period ended December 31 Money Market
and the period ended June 30, 1996. Sub-Account
- -------------------------------------------------------------------------------------------------------------
1996 1995(3)
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCUMULATION UNIT VALUE, BEGINNING
OF PERIOD $ 10.30 $ 10.00
- -------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Net investment income/(loss) .21 .30
Net realized and unrealized
gain/(loss) on investments -- --
- -------------------------------------------------------------------------------------------------------------
Total income/(loss) from operations .21 .30
- -------------------------------------------------------------------------------------------------------------
ACCUMULATION UNIT VALUE, END OF PERIOD $ 10.51 $ 10.30
=============================================================================================================
Total return** 2.05% 3.03%
=============================================================================================================
RATIOS AND SUPPLEMENTAL DATA:
Net assets at end of period $3,218,786 $1,725,222
Ratio of net investment income/(loss)
to average net assets*** 4.00% 2.95%
=============================================================================================================
</TABLE>
*The above table calculates the change for a unit outstanding by using the
average units outstanding throughout each period.
**Not annualized for periods of less than 1 full year.
***Annualized for periods of less than 1 full year.
(1) Period September 13, 1993 (inception) to December 31, 1993
(2) Period May 2, 1994 (inception) to December 31, 1994
(3) Period May 1, 1995 (inception) to December 31, 1995
(4) Period May 1, 1996 (inception) to June 30, 1996
See Notes to Financial Statements
Janus Retirement Advantage June 30, 1996 Semiannual Report 4
<PAGE> 5
JANUS RETIREMENT ADVANTAGE WRL SERIES ANNUITY ACCOUNT B
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The WRL Series Annuity Account B (the "Account") was established as a variable
accumulation deferred annuity separate account of Western Reserve Life Assurance
Co. of Ohio ("WRL") and is registered as a unit investment trust under the
Investment Company Act of 1940, as amended. The Account encompasses the Janus
Retirement Advantage(R), a tax deferred variable annuity contract issued by WRL.
The Account contains nine investment options referred to as Sub-Accounts:
Growth; Aggressive Growth; International Growth; Worldwide Growth; Balanced;
Flexible Income; High-Yield; Short-Term Bond; and Money Market. Each
Sub-Account invests in the corresponding Portfolio of the Janus Aspen Series
Trust (the "Trust"), which is registered as an open-end management investment
company under the Investment Company Act of 1940, as amended.
The Account's equity transactions are accounted for using the appropriate
effective date at the corresponding accumulation unit value.
On May 1, 1996, WRL made an initial depositor's equity contribution of $25,000
to the High-Yield Sub-Account for which it received 2,500 units of the
Sub-Account.
The following significant accounting policies, which are in conformity with
generally accepted accounting principles for unit investment trusts, have been
consistently used in preparation of the Account's financial statements.
VALUATION OF INVESTMENTS
The investments in the Trust's shares are stated at the closing net asset value
("NAV") per share as determined by the Trust on June 30, 1996. Investment
transactions are accounted for on the trade date, using the Trust NAV per share
next determined after receipt of sale or redemption order without sales charges.
Dividend income and capital gains distributions are recorded on the ex-dividend
date. The cost of investments sold is determined on a first-in, first-out
basis.
FEDERAL INCOME TAXES
The operations of the Account are a part of and are taxed with the total
operations of WRL, which is taxed as a life insurance company under the Internal
Revenue Code of 1986, as amended. Under current law, the investment income of
the Account, including realized and unrealized capital gains, is not taxable to
WRL. Accordingly, no provision for Federal income taxes has been made.
2. CHARGES AND DEDUCTIONS
Charges are assessed by WRL in connection with the issuance and administration
of the Contracts.
CONTRACT CHARGE
On each anniversary through maturity date, WRL will deduct an annual contract
charge as partial compensation for providing administrative services under the
Contracts. Deduction of the annual contract charge is currently waived when the
account's value on the anniversary is equal to or greater than $25,000.
ANNUITY SUB-ACCOUNT CHARGE
A daily charge equal to an annual rate of .65% of average daily net assets of
each sub-account is assessed to compensate WRL for assumption of mortality and
expense risks and administrative services in connection with issuance and
administration of the Contracts. This charge (not assessed at the individual
contract level) effectively reduces the value of a unit outstanding during the
year.
3. DIVIDENDS AND DISTRIBUTIONS
Dividends of the Trust's Money Market Portfolio are declared daily and
reinvested monthly. Dividends of the remaining Trust portfolios are declared
and reinvested semiannually, while capital gains distributions are declared and
reinvested annually. Dividends and distributions of the Trust are generally
paid to and reinvested by the Account the next business day after declaration.
4. OTHER MATTERS
As of June 30, 1996 the equity accounts include net unrealized appreciation
(depreciation) on investments as follows:
<TABLE>
<CAPTION>
SUB-ACCOUNT:
------------
<S> <C>
Growth $1,777,599
Aggressive Growth 2,082,496
International Growth 371,638
Worldwide Growth 2,366,734
Balanced 540,556
Flexible Income (28,523)
Short-Term Bond (25,088)
Money Market N/A
High-Yield 2,711
</TABLE>
5 Janus Retirement Advantage June 30, 1996 Semiannual Report
