The Lloyd's Reinsurance to Close Process

2000 ◽  
Vol 6 (4) ◽  
pp. 651-720
Author(s):  
D.J. Hindley ◽  
M. Allen ◽  
A.J. Czernuszewicz ◽  
D.C.B. Ibeson ◽  
W.D. McConnell ◽  
...  
Keyword(s):  
Accounting Standards ◽  
Fair Value ◽  
Direct Application ◽  
Objective Analysis ◽  
Insurance Companies ◽  
International Accounting Standards ◽  
Financial Condition ◽  
General Insurance ◽  
The Future ◽  
Value Concept

ABSTRACTGeneral insurance syndicates at Lloyd's are required to obtain a Statement of Actuarial Opinion (SAO) in relation to their solvency reserves. This paper focuses on the reinsurance to close (RITC) process at Lloyd's, which is not currently subject to such opinions although some Lloyd's syndicates choose to obtain informal opinions from actuaries in relation to RITC. The paper analyses the current RITC process and suggests two types of opinion that actuaries could provide in relation to RITC. We also consider briefly financial condition opinions for Lloyd's syndicates. The International Accounting Standards Committee (IASC) published their issues paper on insurance accounting during the drafting of this paper, and we include some consideration of the application of the IASC's fair value concept to the future claim liabilities of Lloyd's syndicates. Lloyd's may be subject to unprecedented changes in the next few years, and we therefore consider the effect of these potential changes both on the existing actuarial solvency opinions and on our suggested opinions in relation to RITC. Our aim is to carry out an objective analysis of this unique reserving process and to offer suggestions as to how actuaries might add value to the process, taking into account how Lloyd's might change in future. Because of these changes, much of the paper has direct application to non-Lloyd's insurance companies.

Accounting Concepts in Company Law

2021 ◽  
Vol 18 (3) ◽  
pp. 398-427
Author(s):  
Jesper Seehausen
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Fair Value ◽  
Company Law ◽  
International Accounting Standards ◽  
Reporting Standards ◽  
Financial Reporting Standards ◽  
Eu Legislation ◽  
Starting Point ◽  
Pros And Cons

Abstract Taking as a starting point Peter Hommelhoff’s argumentation that accounting law is, in many respects, linked to company law, the purpose of this article is to discuss one perspective of the links between accounting law and company law: accounting concepts in company law. After a brief outline of the existing EU legislation on accounting and a discussion on whether accounting law is part of company law, some examples of accounting concepts in company law – i. e. examples of accounting concepts that have been ‘implemented’ in company law – are discussed, drawing on the Consolidated Company Law Directive (CCLD) and the Shareholder Rights Directive (SRD 2) as well as the International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS). These examples are related party transactions, consideration other than in cash and fair value, serious loss of the subscribed capital as well as a few other examples. It is also discussed whether accounting concepts in company law are a ‘good’ or a ‘bad’ thing. Balancing the pros and cons, in the author’s opinion, it is mostly positive that accounting concepts are used in company law in areas where this makes sense – and hence, in the author’s opinion, accounting concepts in company law are mainly a ‘good’ thing.

scholarly journals PENERAPAN FAIR VALUE ASET TETAP OLEH KANTOR PELAYANAN KEKAYAAN NEGARA DAN LELANG SORONG (STUDI KASUS PADA PENGADILAN AGAMA MANOKWARI)

2020 ◽  
Vol 1 (2) ◽  
pp. 97-104
Author(s):  
Amrie Firmansyah ◽  
Fadhil Maris Alamsyah ◽  
Eko Agus Purwanto
Keyword(s):  
Accounting Standards ◽  
Fair Value ◽  
District Court ◽  
Government Agencies ◽  
Positive Contribution ◽  
Structured Interviews ◽  
Government Sector ◽  
Fixed Assets ◽  
Asset Data ◽  
Value Concept

This study aims to analyze the implementation of the fair value concept of fixed assets to government agencies. The method in this study uses a qualitative approach with structured interviews. The informants in this study are three employees of the Services Office of State Wealth and Auction Sorong, who already have appraisal certificates. The object of this study uses the asset data of the manokwari district court in the form of land, buildings, and buildings, and water buildings during 2018. This study concludes that the implementation of the fair value concept in fixed assets by the Services Office of State Assets and Auction Sorong in broad outline is in accordance with applicable regulations or accounting standards, especially accounting standards related to fixed assets and fair value. Based on the results of this study are expected to encourage improvements in the process of inventory of fixed assets in the scope of government agencies and may make a positive contribution to the development of the implementation of fair value accounting in government sector. Penelitian ini bertujuan untuk menganalisis penerapan konsep nilai wajar aset tetap pada instansi pemerintahan. Metode dalam penelitian ini menggunakan pendekatan kualitatif dengan wawancara terstruktur. Informan dalam penelitian ini adalah tiga pegawai Kantor Pelayanan Kekayaan Negara Dan Lelang Sorong yang telah memiliki sertifikat penilai. Objek penelitian ini menggunakan data aset pengadilan negeri manokwari berupa tanah, gedung dan bangunan, dan bangunan air selama tahun 2018.Penelitian ini menyimpulkan bahwa penerapan konsep nilai wajar pada aset tetap oleh Kantor Pelayanan Kekayaan Negara Dan Lelang Sorong secara garis besar sudah sesuai dengan peraturan atau standar akuntansi terkait yang berlaku, terutama standar akuntansi terkait aset tetap dan nilai wajar. Berdasarkan hasil penelitian ini diharapkan dapat mendorong perbaikan proses inventarisasi aset tetap di lingkup instansi pemerintahan dan dapat memberikan kontribusi yang positif bagi perkembangan atas penerapan akuntansi nilai wajar dalam sektor pemerintahan.

scholarly journals MENGUPAS PERSOALAN STANDAR AKUNTANSI KEUANGAN - GOODWIL DI BERBAGAI NEGARA : SUATU PENDEKATAN STUDI LITERATUR

2017 ◽  
Vol 2 (2) ◽  
Author(s):  
Deddy Kurniawansyah
Keyword(s):  
Research Method ◽  
Intangible Assets ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Fair Value Accounting ◽  
Literature Study ◽  
Accounting Standard

This literature study explains and describe the development of the concept of goodwill from the perspective of accounting by observing and describing until the development at this time, discusses differences in accounting standards of goodwill applicable in some countries, and explains the things that contradict the goodwill. This research method used qualitative with literature study. The results of this study are in some countries, the concepts and rules on goodwill accounting have undergone various changes, including international accounting standards issued by the IASC. Initially goodwill is capitalized and amortized over no more than 20 years. But, along with the increasing use of fair value accounting in accounting standards, thetreatment for goodwill also experienced a shift that is eliminated by the amortization method is replaced by doing impairment test to goodwill. The results of this study contribute as add to the treasury of financial accounting literature, especially accounting treatment of goodwill as intangible assets in the financial statements of various countries such as Indonesia, America and the England.Keyword :Goodwiil, Impairment, Financial Accounting Standard

Using arguments and myths to lobby over controversial accounting issues: evidence from Japan

2020 ◽  
Vol 32 (3) ◽  
pp. 355-390
Author(s):  
Noriyuki Tsunogaya ◽  
Andreas Hellmann
Keyword(s):  
Financial Reporting ◽  
Financial Services ◽  
Accounting Standards ◽  
Fair Value ◽  
Network Effect ◽  
International Accounting Standards ◽  
Content Type ◽  
Generally Accepted Accounting Principles ◽  
Financial Reporting Standards ◽  
Stakeholder Groups

Purpose This study aims to examine the (overt) arguments and (covert) myths the Business Accounting Council (BAC) members have used to lobby over controversial accounting issues, such as the application of fair value accounting (FVA) and the adoption of International Financial Reporting Standards (IFRS) in Japan. Design/methodology/approach The authors used a content analysis to examine 85 statements included in multiperiod BAC meeting minutes and 68 articles prepared by International Accounting Standards Board (IASB) representatives from Japan. Findings The results reveal that together with the arguments, myths were created and amplified by opponents of FVA and the Financial Services Agency to hide the latter’s strong regulatory power. They created these myths, using covert stories of the importance of manufacturing activities and tax accounting (for small- and medium-sized enterprises [SMEs]), to oppose mandatory IFRS adoption in Japan and, thus, to maintain vested rights in preparing the Japanese generally accepted accounting principles and Japanese accounting standards for SMEs. Originality/value First, this study contributes to the lobbying literature by focusing on the coalition (network) effect of influential stakeholder groups. Second, although lobbying activities have been investigated mostly using comment letters, this study reviews multiperiod BAC meeting minutes and articles prepared by IASB representatives from Japan. Third, the study examines both overt arguments and covert myths, both of which are important in unmasking the fundamental structures of power within influential organizations, such as government agencies and standard-setters.

The Implication of Fair Value Accounting for General Insurance Companies

2003 ◽  
Vol 9 (05) ◽  
pp. 1007-1044 ◽  
Author(s):  
P. K. Clark ◽  
P. H. Hinton ◽  
E. J. Nicholson ◽  
L. Storey ◽  
G. G. Wells ◽  
...  
Keyword(s):  
Fair Value ◽  
Insurance Companies ◽  
Fair Value Accounting ◽  
General Insurance

Voluntary adoption of the consolidated financial statement and fair value accounting by italian local governments

2014 ◽  
Vol 26 (2) ◽  
pp. 313-344 ◽  
Author(s):  
Silvia Gardini ◽  
Giuseppe Grossi
Keyword(s):  
Local Governments ◽  
Accounting Standards ◽  
Fair Value ◽  
Financial Statement ◽  
Annual Reports ◽  
International Accounting ◽  
International Accounting Standards ◽  
Fair Value Accounting ◽  
Consolidated Financial Statement ◽  
Voluntary Adoption

The paper focuses on the potential benefits of fair value accounting (FVA) in the public sector and the shift towards the entity theory of consolidation supported by international accounting standards. The analysis of the Italian cases shows neither adjustments of the assets to their fair value, nor any recognition of intangibles other than goodwill in consolidated financial statement (CFS), maintaining the configuration of a municipal corporate group based on historical costs. These findings suggest a lack of focus on FVA by local governments (LGs), which is in contrast with international accounting standards. Using a combination of sources (such as annual reports and interviews), part of this paper is based on multiple-case studies of Italian LGs on the voluntary adoption of CFS.

scholarly journals PENERAPAN METODE BAYES DALAM MENGESTIMASI PREMI KREDIBILITAS PADA ASURANSI UMUM

2021 ◽  
Vol 10 (4) ◽  
pp. 241
Author(s):  
RAIN FERNANDO BANGUN ◽  
I NYOMAN WIDANA ◽  
DESAK PUTU EKA NILAKUSMAWATI
Keyword(s):  
Empirical Bayes ◽  
Theory Model ◽  
Credibility Theory ◽  
Insurance Companies ◽  
Insurance Premiums ◽  
General Insurance ◽  
The Future

Determination of insurance premiums is very important the calculation must be done carefully so that there is experience losses. The purpose of this research is to find out the application of empirical Bayes credibility theory Model 1 and estimate of the credibility premium on general insurance. A method that can help in overcoming these problems, that is empirical Bayes credibility theory Model 1, results of the estimated credibility premium credibility (in Euros) for insurance companies Alianz, Csob, Generali, Koop, Unisqa, and Wusten respectively as follows: 46.774811, 7.801307, 10.368991, 58.812250, 6.703035, and 5.091605.  These results, the average claim is greater than the credibility premium, so that insurance companies can reserve premiums for the future.

Value Relevance Change Under International Accounting Standards: An Empirical Study of Peru

2012 ◽  
Vol 15 (02) ◽  
pp. 1150008 ◽  
Author(s):  
Chunhui Liu ◽  
Lee J. Yao ◽  
Michelle Y. M. Yao
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Accounting Standards ◽  
Fair Value ◽  
Securities And Exchange Commission ◽  
International Accounting ◽  
International Accounting Standards ◽  
Recent Period ◽  
Financial Reporting Standards ◽  
Value Measurement

In face of broad adoption of International Financial Reporting Standards (IFRS), the Securities and Exchange Commission (SEC) is considering its quality and acceptability. This paper reports a study that examines changes in value relevance with a sample of Peru firms mandated to use international accounting standards between 1999 and 2007. The period under study is broken into a period of International Accounting Standards (IAS) between 1999 and 2001, a period of early IFRS between 2002 and 2004, and a more recent period of IFRS between 2005 and 2007 by major changes to accounting standards. The empirical results generally indicate that value relevance improved from the IAS period to the early IFRS period when the International Accounting Standards Board (IASB) took over the International Accounting Standards Committee (IASC), but worsened from the early IFRS period to the recent IFRS period when more accounting standards started to reflect IASB's preference for fair value measurement of assets and liabilities. Quality weakens to a greater extent for firms with more discretion for fair value estimates. Further analysis shows that such changes are less likely to result from changes in economic conditions, but from the changes of the standards. The findings are particularly alarming in face of rising IFRS adoptions and call for quality improvement to IFRS.

Unfinished Accounting Issues: Incorporating Fair Value and Prudence in Accounting Theory

2006 ◽  
Vol 1 (2) ◽  
pp. 271-290
Author(s):  
A. Asher
Keyword(s):  
Financial Reporting ◽  
Value Creation ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
International Accounting Standards ◽  
Financial Reporting Standards ◽  
Considerable Debate ◽  
Accounting Theory ◽  
Single Set

ABSTRACTThe International Accounting Standards Board (IASB) is introducing new International Financial Reporting Standards (IFRS) which aim to make financial statements more useful. The process has generated considerable debate. This paper is a contribution to the debate, in the particular context of insurance accounting, and attempts to provide a coherent framework for accounting theory which makes a clear distinction between retrospective statements required for administrative accountability, fair value for current market transactions and to measure value creation, and a prospective prudence required to protect policyholders, depositors and other creditors. It is argued that the IASB's founding purpose to provide a single set of accounts is therefore incoherent; different purposes require different numbers. This also implies that fair value accounts should attempt to value intangible assets. In this context, actuarial analyses of surplus would greatly assist in measuring whether model assumptions are appropriate.

scholarly journals The impact of IFRS 7 on the significance of financial instruments disclosure

2016 ◽  
Vol 29 (3) ◽  
pp. 241-273 ◽  
Author(s):  
Yasean A. Tahat ◽  
Theresa Dunne ◽  
Suzanne Fifield ◽  
David M. Power
Keyword(s):  
Balance Sheet ◽  
Accounting Standards ◽  
Fair Value ◽  
Listed Companies ◽  
International Accounting ◽  
International Accounting Standards ◽  
Financial Instruments ◽  
Content Type ◽  
Ifrs 7 ◽  
The Impact

Purpose The main aim of this paper is to investigate Financial Instruments (FIs) disclosures provided by Jordanian listed companies under International Financial Reporting Standard No. 7 (IFRS 7) as compared to those supplied under International Accounting Standards (IAS) 30/32. Design/methodology/approach A sample of 82 Jordanian listed companies is used in this monograph. A disclosure index checklist was constructed to measure FI information provided by the sample companies. Findings The study finds that a larger number of Jordanian listed companies provided a greater level of FI-related information after IFRS 7 was implemented. Specifically, the sample firms provided 47 per cent of the disclosure index items after implementing IFRS 7 as compared to 30 per cent under IAS 30/32. In addition, the industrial analysis of FI disclosure revealed that the highest level of disclosure was provided by firms in the banking sector over the two periods; these companies disclosed 44 per cent of FI-related items pre-IFRS 7 and 69 per cent of items post-IFRS 7. Moreover, the industrial analysis of FI disclosure pre-and post-implementation of IFRS 7 revealed specific aspects of usefulness. In particular, some components of FI disclosure (Balance Sheet and Fair Value) showed no significant differences within and across sectors post the implementation of IFRS 7, suggesting that the new standard may have enhanced the comparability of such information. Research limitations/implications The results provide timely findings to Jordanian authorities who may be trying to evaluate the current reforms adopted; stringent enforcement mechanisms are needed to ensure full compliance with accounting standards. However, the present investigation was conducted on a single nation (Jordan); the circumstances in Jordan gave rise to the importance of the current study. A cross-country comparative analysis is needed in order to examine the application of IFRS 7 in a developing country context. Practical implications The results of the current study have a number of implications for policymakers. First, they provide a great deal of insight for the International Accounting Standards Board about the relevance of its standards to countries outside the Western context. In addition, the findings provide valuable insights for policymakers in Jordan who are concerned about the implications of mandatory disclosures. Originality/value The analysis of FI disclosure in developing countries in general, and in Jordan in particular has been overlooked by the extant literature and therefore this study is the first of its kind to examine this research issue for a sample of Jordanian firms.

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