| The IASB chairman spoke highly of the Chinese accounting standards convergence:In the past10years, Chinese accounting industry has changed dramatically, both the Chinese Premier and the accounting industry leaders are aware of the importance of accounting in economic development, and the vigorous development of the accounting profession has been written into the national development plan, China has become the leader in the Asian Accounting Standards international convergence. It can be seen, accounting standards in China has been committed to international convergence, and has made remarkable achievements, as a branch of the accounting, insurance accounting, of course, is no exception. However, due to the special nature of the insurance industry, insurance accounting reform and the convergence of accounting standards lag behind the general, the research on the insurance contract accounting standards in China and international is in a dynamic process, therefore, both in theory and practice, there are a lot of research space, so this article select accounting for insurance contracts as a research object to expand the research.So, exactly what prompted China determined to reform the insurance accounting, commitment to international convergence? The reason may be the following.(1)The rapid development of the insurance industry is inseparable from the insurance accounting guidelines. With the development of economy, changes in the environment, the progress of science and technology, Risk has become a kind of normal economic operation, How to prevent, avoid, transfer and control the risk effectively, has become the important content of business management. The function of insurance is to disperse the risk, loss compensation, finance; therefore, the insurance industry has gained rapid development. As everyone knows," the economy more develops, the more important accounting ". Then, with the development of insurance, insurance accounting is more important. The quality of financial information is the lifeblood of the market economy, like the blood is essential for human life, the role of financial information to ensure a well-functioning market should not be underestimated, If investors do not believe the figures of the financial report, the financial markets will stop running. So the insurance industry’s sound development is inseparable from insurance accounting standards.(2)National insurance accounting treatment is difficult to reach a consensus. The operational characteristics of the insurance industry make the insurance contracts have three main features:①the uncertainty of future compensation, so the future cash flow is uncertain;②long-term, therefore it is difficult to match the income and expenses of each accounting;③the inclusion of savings, assurance, options and other financial instruments. There are difficulties in recognition and measurement of insurance accounting, due to above characteristics. How to recognize the revenue and measure the reserve is the main difficulty.In view of the above features of the insurance contract, the insurance contract revenue recognized and reserve measurement become a long-standing problem, and because there are differences in various aspects of the national situation, the culture of the community, economic development level, coupled with the insurance industry itself particularity-insurance related to a country’s social-economic stability, the governments have strict supervision of the national accounting treatment of insurance business,so it is difficult to reach a consensus.(3)Conform to the requirements of international operations in the insurance industry. The integration of the world economy, making the capital between the countries closer together, and the capital is no longer subject to the control of national boundaries. Investors, who seek diversification and income growth, want to find on an equal basis to compare and contrast investment opportunities on a global scale; The multinationals want to remove the burden of a variety of geographic reporting requirements, reduce unnecessary costs, enable the freedom to raise funds from the worldwide; Regulators and policy-makers want to create a fair competitive environment for financial reporting in order to better protect the users of financial statements. The basis on which all the desire to achieve, is the unity of the national accounting standards, or the differences among countries accounting standards will result in accounting information can not reflect its due role. Specific to the insurance industry’s international operations will be caught in the dilemma. Along with the insurance companies which account for large market share have listed in domestic and overseas capital market, Chinese insurance company internationalization degree unceasingly is also enhancing, and the international insurance accounting standards convergence be imperative.Well, after a series of efforts, what’s the Chinese insurance contract accounting norms has made in the international convergence? In this paper, a comparative study, in-depth and detailed contrast to the Chinese new regulations and international insurance accounting standards on accounting for insurance contracts, our country has achieved convergence results are the following:(1)Insurance contract as the object of the insurance accounting norms, defined and identified in its achieved convergence. This is because, with the development of the financial mixed, insurance companies, the insurance contract is no longer a one-to-one mapping relationship, that is to say, the company which issue the insurance contract is no longer limited to the insurance company, insurance companies no longer simply operate the insurance contract.In view of this, the insurance contract is essentially an agreement to assume the insurance risk, the proposed spin-off of the hybrid contract.(2)Recognized premium income convergence.The premium income resulted by the insurance industry’s essential functions should be recognized.But such as investments, deposits and other elements make the premium income of the insurance contracts starting to merge, So, in order to standardize the confirmation of the premium income, both of which only meet the definition of an insurance contract revenue can be recognized as the premium income, that only through hybrid insurance contract splitting and significant insurance risk testing requirements, can be included in premium income.(3)The convergence of the insurance contract liabilities measurement. The new regulations of the country guarantees will fully learn the IASB advanced research-using elements of law, according to the best estimate assumptions, to consider the impact of the marginal, does not confirm that the first day of profits and other provisions to achieve convergence. Because of the particularity of the insurance business-"the former income, expenditures in the post-insurance", liabilities insurance accounting measurement is important and difficult, with the International Accounting Standards Convergence must consider these important ingredients.(4)The introduction of the fair value. This is because, with the development of China’s economy, measured in terms of historical cost is unsuited to the economic development and the gradual improvement in market conditions, China has the conditions for the introduction of fair value. In order to adapt to the needs of the international operations of China’s insurance industry, the new regulations of the insurance contract accounting fair value measurement basis to achieve the convergence IFRS4.Although convergence is direction, however, convergence does not mean equal. Due to the differences in our social culture, level of economic development, the insurance market, the level of development, resulting in our insurance contract accounting norms and international insurance accounting standards still have some differences.(1) The insurance contract measurement model-balance method to use is not complete. Because①some insurance assets and liabilities are not measured at fair value, instead of using the original principle of deferred matching method, it is precisely because of the of care measurement method to protect the interests of investors, resulting in the status.②International’s research on accounting for insurance contracts in a dynamic process, the path to the target of future insurance contracts of international convergence of accounting is unknown.(2) The introduction of a spin-off of the relevant provisions of the hybrid contract, achieve international convergence in general, but there are still differences in specific judging criteria. International Insurance Accounting Standards Exposure Draft’s principle is "closely related",the principle of the regulations in our country is "separately measured and divided into criteria", which may cause a certain impact on the practical operation.(3) there are differences in the operation of specific practical details of the measurement of insurance liabilities of insurance. In view of the degree of development of Chinese insurance market, measurement technology gap with the developed countries, international insurance accounting standards are also difficult to achieve in the Chinese market.(4) Differences of the information disclosure:the level of detail of the report presentation, and the range of provisions. On the one hand, lacking of technical specifications and related operations, caused the insurance company cannot understand it accurately; on the other hand, may be due to Chinese insurance market is not perfect, the insurance company lack technology.Convergence is not just theory, convergence also requires action. So, whether the insurance company put it into practice? By a qualitative analysis in the fourth chapter, Chapter5of quantitative analysis, an insurance accounting norms convergence of the impact and the use of the present situation of China’s insurance companies, The convergence of accounting for insurance contracts in China has brought a series of beneficial effects, including:Convergence of premium income will make the profits of the insurance company be more realistic, and will promote the adjustment of product structure of the insurance company; The convergence of the insurance reserve will increase the net assets of the insurance company in short-term, so that the life insurance business is more robust, reduce the combined ratio for property and casualty insurance business; The convergence of information disclosure requirements, the rights of policyholders and investors will be protected, raise the insurance companies’risk awareness, while promoting a more robust operation. However, through the analysis, the paper also found some problems that exist in practice, differences in accounting standards and international insurance, includes the lack of implementation of the new reserve assessment methods; Insurance information disclosure is too simple; Insurance companies use a similar concept to confuse the users of financial statements。The convergence needs exchange; convergence is a new starting point, facing the differences and problems that exist in the convergence process, what should we do? In this paper, after study in the last chapter build a figure about perfect convergence strategy. Strengthen the effective interaction of insurance practitioners and theorists, work together:Improve the implementation details of the new evaluation method of the reserve, strengthen supervision; For the purposes of meeting the requirements of the users of financial statements,to improve the information disclosure; clearly defined major concept; continue to track the international insurance accounting movements, actively involved in the development work. While strengthen the effective interaction of the insurance contracts with international accounting standards, continue to follow the trends of the international insurance accounting, and in-depth analysis of the latest research results, and at the same time, based on national conditions to carry out the investigation and deliberation, and the results are fed back to the IASB, actively involved in the development work.In summary, although the convergence of the insurance contract accounting norms belong to the trend, carries benefits, However, convergence does not mean equivalent. Therefore, the convergence of the insurance contract accounting norms is a process, need to continue the exchange of scientific and rational action, and the convergence as a new starting point, and actively participate in the formulation of international insurance accounting standards, in contrast to maintain a good ongoing interaction, and strive to open win-win situation. |
PDF Full Text Request