Criteria And Approaches For Differentiationin Accounting Estimatesfrom The Actuarial Valuations

The accurate presentation of economic information in an entity's financial statements requires periodic updates of the estimates used. Often the business of insurance companies, pension insurance companies, health funds, banks, investment firms, regulatory institutions and others requires the use of actuarial services. From their calculations the price of the offered products and services for the end user is determined.Actuaries can also be hired as consultants when assessing the risks to the business of a company by offering guidance on how to manage them.Of significant importance are the accounting estimates made in relation to the management's estimates of the entity's expected economic benefits in using the entity's assets. Actuarial and accounting estimates are two different estimates made in connection with the financial statements of enterprises. By comparing and analyzing them, it is possible to answer the question of whether they have characteristics because of which their differentiation can be justified.This study proposes the use of a conceptual apparatus, distinguishing criteria and practical approaches to uniquely define and logically relate relationships and processes associated with the use of accounting estimates and their differentiation from estimates made by actuaries for financial reporting purposes.