Research On The Application Of New Financial Instruments Accounting Standards In Insurance Enterprises

Since the reform and opening up,China's insurance industry has achieved rapid development.In 2016,China's insurance premium scale surpassed that of Japan,ranking the second in the world,and becoming one of the "big insurance countries".As an important business activity of the asset end of insurance enterprises,the investment of insurance funds is directly restricted by the financial instrument criterion.In March 2017,the ministry of finance issued revised new accounting standards for financial instruments,which substantially revised the classification and measurement of financial assets,impairment of financial assets and hedge accounting.In June 2017,the ministry of finance issued the "accounting [2017] NO.20 document",which clarified the timing of insurance companies' implementation of accounting standards related to new financial instruments.So far,only one insurer in China,ping an,has implemented the new financial instrument guidelines since 2018,while other insurers have suspended their implementation until 2021.It can be seen that the revision of the new financial instrument standards will have a significant impact on the insurance industry,and the application of the new standards in insurance enterprises needs further study.This paper adopts the method of case study to analyze the application of new financial instrument criterion in insurance enterprises.Specific research problems can be carried out in three aspects :(1)taking ping an of China as an example,the status quo of ping an's application of new financial instrument criteria is sorted out and evaluated;(2)according to the application status and evaluation of the new financial instrument guidelines by ping an of China,the difficulties in the implementation of the guidelines are sorted out;(3)combined with the application status of the new standards and difficulties of the case enterprises,this paper proposes countermeasures and Suggestions on the application of the new financial instrument standards for insurance enterprises in China.The research findings of this paper are as follows :(1)under the application of the new financial instrument criterion,some inherent problems of the old criterion can be solved,and the classification of financial assets can be more reasonable and transparent.In this context,the space for earnings management can be reduced.The measurement of expected credit loss has extended the range of asset impairment,and the provision of impairment is more cautious.(2)the impact of the implementation of the new financial instrument standards on the financial situation of insurance enterprises is mainly reflected in the changes in asset classification and equity scale,and the impact on solvency is relatively limited;At the same time,the new rules will increase the volatility of insurance companies' profits,thus changing their asset allocation.(3)the implementation of the new financial instrument standards has brought new practical problems and brought difficulties for the practical application of the standards.The new classification of financial assets not only increases the workload of enterprises,but also puts forward higher requirements on the professionalism of personnel.The expansion of the measurement range of the fair value of financial assets also further increases the difficulty of the implementation of the new standards.The expected credit loss model puts forward higher requirements on the technical ability of enterprises.On the one hand,the non-qualitative and quantitative technical standard also provides space for the earnings management of enterprises,on the other hand,it also increases the difficulty of implementing the new standard.The practical significance of this paper is as follows: firstly,combing the application status of the new financial instrument criterion in insurance enterprises and evaluating it can map out the problems existing in the implementation of the new financial instrument criterion in China's insurance industry;Secondly,by exploring the difficult problems in the process of implementing the new financial instrument standards of ping an of China,the industry thinking is triggered.Finally,it provides practical Suggestions for the application of the new financial instrument standards for insurance enterprises,and brings some help for the companies in the industry to adapt to the new standards.