The Explore Of China Insurance Accounting Standard's Model & Path

With the development of multinational insurers, the international coordination of Insurance Accounting Standards has become an unavoidable part in setting up China Insurance Accounting Standards. In fact, China has started the International convergence of the insurance Accounting Standards. The "New Accounting Standards No. 25: the original insurance contract" and "Accounting Standards No. 26: Reinsurance Contract" are important achievements, which were promulgated in February 2006 by Ministry of Finance People's Republic of China. However, there are still some urgent problems that are not resolved, for example, are the China's existing insurance accounting standards models match the Convergence task? How to determine the approach to convergence? Based on current insurance accounting environment, could the"New Accounting Standards No. 25&26"get further improvement? What supporting reform does the convergence task needed? This paper expects to answer all these questions, expects to provide the convergence task Overall guidance & Specific proposals.Scientific understanding the background of International convergence of the insurance Accounting Standards is a prerequisite of conduct china's insurance accounting standards convergence task. Promoting the Accounting Standards Convergence is the main job of International Accounting Standards Board IASB. IASB started insurance accounting program in 1997, and"International Financial Reporting Standards No. 4: insurance contracts, IFRS4", published in March 2004, is the first result. Henceforth, the world's major developed countries and areas have started to converge to IFRS4. Convergence has become an inevitable trend.IASB is dominated by developed country, so the IFRS4, which issued by IASB, is more suitable for users in developed country's mature insurance market. After nearly 30 years development, China's insurance industry has made notable achievements, but it is still immature. Under such circumstances, converge to IFRS4 is bound to have an impact, both positive and negative, on the insurance industry and insurance accounting. During China's insurance accounting standards convergence task, we need to enhance the positive effect and reduce the negative impacts.China's insurance accounting adopts the form of the Accounting System for a long time. The "New Accounting Standards", published in February 2006 by Ministry of Finance, is the first time that insurance accounting included into Accounting Standards. Currently, both Accounting System and Accounting Standards are used in China's insurance accounting. Listed insurer implement"New Accounting Standards No. 25&26", non-Listed insurer may continue to implement the existing accounting system. There are still some big differences between China's insurance accounting and IFRS4, many of these differences can be further eliminated. China Insurance Accounting Standard's model has a great effect on the Accounting Standards scientificalness, authority, applicability and effectiveness, and determines Insurance Accounting Standard's convergence process. Therefore, the exploration of China Insurance Accounting Standard's model is very useful for removing those differences and getting further convergence achievement.Accounting Standard's model is constituted by constitutor, process and foundation. Constitutor determines who has the power, process determines how to control and foundation determines the guiding philosophy. China Insurance Accounting Standard's model needs learning from international experience as well as adapt to China's national conditions.Convergence task also needs overall guidance and specific recommendations. No double that step by step convergence is the realistic choice. At the same time, some principles need to be followed and carried out strictly, i.e. seeking commons from differences, choosing something helpful to us and Essence is always heavier than form. Overall guidance provides us a particular plan to achieve convergence targets. Specific recommendations make suggestions for present concrete work, including improvement of"New Accounting Standards No. 25&26"and suggestions of supporting reforms. Anyway, China Insurance Accounting Standards Convergence is a long-term and systematic process.