Research On The Impact Of IFRS9 On The Comprehensive Income Of Chinese Insurance Industry

After the global financial crisis in 2008,the community has raised a lot of questions about the old financial instruments guidelines.The G20 summit also requires global accounting standards authority to develop a set of high quality financial instrument guidelines for the complexity and innovation of financial products.In 2014.the International Accounting Standards Board issued the final version of IFRS 9.In 2017.China has also completed the revision of the financial instrument guidelines,and the content converges with IFRS9.IFRS9 has made significant adjustments to the classification,measurement and impairment of financial instruments,which will have a significant impact on the overall structure of the balance sheet and the consolidated income of the income statement,especially the insurance companies with larger financial assets.So insurance companies should evaluate the impact in advance and develop a good response beforehand.This paper takes the XF Life Insurance Company where the author is located as an example to compare the impact of the implementation of the old and new financial instruments on the classification,measurement and impairment of the financial assets of the company,the impact on the comprehensive income,and make suggestions to insurance company finally.This paper is divided into five parts,each part is as follows.Firstly,introduces the background of the topic and the research significance.Secondly,analyses the main differences between the old and new financial instruments,the related concepts and the advantages and disadvantages of the IFRS9.Thirdly,taking XF Life as an example,analyzes the influence of the relevant provisions of financial assets under the old financial instruments guidelines on the comprehensive income.Fourthly,taking XF Life as an example,analyzes the specific changes of financial assets classification.measurement and impairment after IFRS9 implementation,and estimates the impact of these changes on the comprehensive income.Finally,it points out the problems and countermeasures that China's insurance companies will face after the implementation of IFRS9.The insurance companies should make the assessment in advance,improve the employees'professional quality and improve the investment processes,internal control processes and accounting processes,while the company executives should pay attention to the implementation of the new guidelines and the completion of the transformation of multiple systems.Because of the late enactment of IFRS9,the research on the impact of IFRS9 on the comprehensive income is rare.This paper taking XF Life Insurance Company as a case study is very time-sensitive and representative.It also has a very important reference value to the domestic financial industry especially the insurance company.