Research On Participating Insurance Accounting In China

In economic society,the insurance industry is very important,special and complex.And participating insurance is even more significant and unique.Recent development of mutual companies adds opportunities and challenges for participating insurance.Throughout the world,accounting research literature on participating insurance is rare,especially from the perspective of comparison between mutual companies and share companies.Considering the particularity and importance of participating insurance,and the development trend of mutual companies in China,it is of practical and theoretical significance to lunch research on participating insurance accounting in China,especially based on comparison between mutual company and share company.In general,this paper follows the overall logics of starting from reality and combining theory with practice to conduct research and writing.Firstly,it defines the basic relevant concepts of participating insurance accounting,and then carries out its key theoretical analysis,which lays the foundation for the further research and analysis.Thereafter,learn about the current situation of participating insurance accounting in China from the standards perspectives and the practical operation perspectives,find and analyze the accounting problems.Finally,after sorting out international research experience of participating insurance accounting researches,find out the potential solutions,get inspiration and put forward suggestions.This paper finds out that,at the level of Accounting Standards,the existing GAAP accounting standards of China do not pay sufficient attention to participating insurance.Instead,the existing accounting standards tend to satisfy regulatory purposes and are difficult to meet the general purpose accounting information needs as a result.And ‘mutual companies' are barely covered by existing accounting standards.At the level of accounting practice,accounting recognition has always been a major special area of participating insurance accounting.Unallocated distributable earnings,policy dividends,and “foundation funds” of newly established mutual companies are the focus of disputes.Accounting measurement issues focus on the selection of accounting units,the boundary of performance cash flow,and the selection of marginal amortization factors And the quantity and quality of accounting information disclosure are also uneven between different companies.This paper believes that China should improve the existing general purpose accounting standards for participating insurance based on international experience,so as to enhance the usefulness of accounting information.