Impact of Insurance Accounting on Business Reality and Financial Stability
This paper deals with the development of International Financial Reporting Standards on the insurance industry particularly the impact of "fair value" accounting as encompassed in "International Accounting Standard 39: Financial Instruments; recognition and measurement" and in the current insurance project of the International Accounting Standards Board. It outlines the background and developments in this area together with a summary of the present position. There is no present consensus on an appropriate basis for insurance accounting and from 2005 the industry will almost certainly have to deal with a mixed model for accounting which would have assets accounted for at fair value whilst liabilities are primarily accounted for as at present. The standard setters' current goal would be to have a full fair value reporting system in place by 2007. The paper covers the issues in respect of capital and products that this position gives rise to. Despite the uncertainty surrounding the development of a new standard, it is apparent that the insurance industry will have to deal with very significant changes in its financial reporting and these changes have potentially major consequences for the nature of the business. Insurance companies need to continue to pay attention to the on-going accounting debate over reporting standards and ensure that an industry voice is heard in the determination of a standard which reflects the present business reality and economic position and is also truly useful to the users of financial statements. Copyright © 2004 The International Association for the Study of Insurance Economics.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 29 (2004)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: Route de Malagnou 53, CH - 1208 Geneva|
Phone: +41-22 707 66 00
Fax: +41-22 736 75 36
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1018-5895
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=1018-5895|
When requesting a correction, please mention this item's handle: RePEc:bla:geneva:v:29:y:2004:i:1:p:56-62. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.