| In the finance accounting statement, the revenue is an importantaccounting factor. The recognition and measurement of revenue isconcerned with business enterprises. The main question discussed inthis paper is the recognition and measurement of premium ininsurance enterprises. The question is different from it in otherbusiness enterprise because that premium has the particularcharacteristics. Premium in life insurance firms has property bothrevenue and liability. It is a liability in life insurance enterprises asthe same time when it is recognized as a revenue factor. Throughanalyzing the recognition standard of premium, in Accounting Rulesof Insurance Enterprise, we know about the time when premium isrecognized as revenue and which part consisting of premium can berecognized as revenue. Accounting measurement is based onaccounting recognition, the part that they had been recognized asrevenue will be measured by fair value. To other part, their mostcorrelative measurement attribute is fair value because they matchwith financial instruments. On the other hand, the measurement ofpremium is actually the deprive measurement, so its measurementattribute is deprive value. Because the standard of revenuerecognition and measurement is inconsistent in each country, it isnecessary that we compare all kinds of models and chose a bettermodel. The paper consists of four sections: The first section: the concept about the premium of lifeinsurance enterprise. To further discuss the question of recognitionand measurement of premium, the conception of premium isdemanded as a base and support. In this section, the content andcharacteristics of premium is detailed. From general conception ofrevenue to particularity of premium, we detail the definition andcharacteristic of premium in life enterprise, and analyze thedifference from all kinds of insurance contracts in the content ofpremium. The second section: the recognition of premium in life insurancefirms. All known, the recognition of premium include its recognitionstandard, recognition bases, there are three recognition standard ofrecognition of premium in insurance accounting rules, it will berecognize as revenue when premium accords with the three standards.According to recognition bases, accrual-basis accounting is theguidance. This section details the recognition time of all kinds ofinsurance contracts in life insurance enterprise. The third section: the measurement of premium in life insuranceenterprise. This section main debates the measurement attribution ofpremium and of financial assets and liability relating with premium.When premium is recognized as revenue, its measurement attributionis history proceeds, belong to fair value. When premium is recognizedas assets or liabilities, their measurement attribution would bedeprive value. The last section: the status and advice of recognition andmeasurement of premium of life insurance enterprise in my country.In the section, we analyze the status of domestic life insuranceindustry, indicate the model of recognition and measurement ofpremium according with domestic insurance industry. |
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