scholarly journals The IFRS 17 contractual service margin: a life insurance perspective

2021 ◽  
Vol 26 ◽  
Author(s):  
W. Yousuf ◽  
J. Stansfield ◽  
K. Malde ◽  
N. Mirin ◽  
R. Walton ◽  
...  
Keyword(s):  
Life Insurance ◽  
Market Value ◽  
Financial Statements ◽  
Insurance Contract ◽  
Accounting Standard ◽  
Insurance Contracts ◽  
Ifrs 4 ◽  
Insurance Perspective ◽  
To Come

Abstract IFRS 17 Insurance Contracts is a new accounting standard currently expected to come into force on 1 January 2023. It supersedes IFRS 4 Insurance Contracts. IFRS 17 establishes key principles that entities must apply in all aspects of the accounting of insurance contracts. In doing so, the Standard aims to increase the usefulness, comparability, transparency and quality of financial statements. A fundamental concept introduced by IFRS 17 is the contractual service margin (CSM). This represents the unearned profit that an entity expects to earn as it provides services. However, as a principles-based standard, IFRS 17 results in entities having to apply significant judgement when determining the inputs, assumptions and techniques it uses to determine the CSM at each reporting period. In general, the Standard resolves broad categories of mismatches which arise under IFRS 4. Notable examples include mismatches between assets recorded at current market value and liabilities calculated using fixed discount rates as well as inconsistencies in the timing of profit recognition over the duration of an insurance contract. However, there are requirements of IFRS 17 that may create economic or accounting mismatches of its own. For example, new mismatches could arise between the measurement of underlying contracts and the corresponding reinsurance held. Additionally, mismatches can still arise between the measurement of liabilities and the assets that support the liabilities. This paper explores the technical, operational and commercial issues that arise across these and other areas focusing on the CSM. As a standard that is still very much in its infancy, and for which wider consensus on topics is yet to be achieved, this paper aims to provide readers with a deeper understanding of the issues and opportunities that accompany it.

scholarly journals 5.8. New model of insurance contract measurement as the factor for the improvement of the quality of financial statements

2020 ◽  
Author(s):  
М.Б. Арчакова-Ужахова
Keyword(s):  
Interest Rates ◽  
Critical Analysis ◽  
Financial Statements ◽  
Insurance Contract ◽  
Economic Environment ◽  
New Model ◽  
Insurance Contracts ◽  
Ifrs 4 ◽  
The Impact

Статья посвящена проблемам реформирования учета страховых договоров в соответствии с требованиями международных стандартов финансовой отчетности (МСФО). Прежний подход к учету предполагал отсутствие единой последовательной учетной политики в отношении страховых договоров, разрешал применять учетные практики тех стран, в которых находится эмитент страхового договора, что влекло за собой ряд проблем. Автор статьи исследовал специфику и провел критический анализ требований нового стандарта МСФО (IFRS) 17, оценил преимущества нового подхода, а также последствия внедрения и влияние стандарта на транспарентность финансовой отчетности компании-страховщика. The article deals with issues related to the problems of reformation of insurance contracts’ accounting. The existing Standard, IFRS 4, allows insurers to account differently for insurance contracts they issue, even if those contracts are similar. Further, many insurers’ financial statements lack regular updates of the value of insurance obligations to reflect the effect of changes in the economic environment, such as changes in interest rates and risks. The author of the research has made critical analysis of requirements of the new standard, measured the impact of new rules at the transparency of financial statements.

scholarly journals Reflexiones sobre el anteproyecto de ley de contrato de seguro y la designación del beneficiario en el seguro sobre la vida = Reflections on the draft law on the insurance contract and beneficiary designation in on life insurance

2012 ◽  
pp. 145
Author(s):  
María Angustias Díaz Gómez ◽  
Carlos Miguélez del Río ◽  
Elicio Díaz Gómez
Keyword(s):  
Life Insurance ◽  
Insurance Contract ◽  
Insurance Contracts

<p>En este trabajo se analiza el Anteproyecto de Ley español de Contrato de Seguro, de 8 de abril de 2011, centrándonos en las novedades más significativas que contiene, en el ámbito de los Seguros de las personas, en el seguro sobre la vida y, de un modo más específico, respecto al beneficiario.</p><p>This paper analyzes the Spanish Draft Law on Insurance Contracts (<em>Anteproyecto de Ley de Contrato de Seguro</em>), dated April 8, 2011, focusing on the most significant developments that contains, in the field of insurance of persons, in life insurance, and in a more specific regard to the insurance beneficiary</p>

scholarly journals Pengaruh Penerapan Standar Akuntansi Pemerintahan (Sap) Berbasis Akrual Dan Sistem Akuntansi Keuangan Daerah Terhadap Kualitas Laporan Keuangan Pemerintah Daerah Kabupaten Gunung Kidul

2018 ◽  
Vol 26 (2) ◽  
pp. 113-130
Author(s):  
Kurnia Rahmah ◽  
Zulkifli Zulkifli
Keyword(s):  
Empirical Study ◽  
Sampling Method ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting System ◽  
Accounting Standard ◽  
Purposive Sampling ◽  
Government Institutions ◽  
Government Accounting

This research aims to analyze the effect of application of government accounting standard and the effect of region’s financial accounting system on the quality of regency financial statements GunungKidul regency (empirical study at government institutions in GunungKidul regency DIY). There are 36 respondents in this research uses purposive sampling method. SPSS 17.0 is used to analyze hypotheses in this research. Based on the result of this research are application of accrual basis government accounting standard influence positively, but not significant on quality of regency financial statements GunungKidul regency, and region’s financial accounting system influence positively, but not significant on quality of regency financial statements Gunung Kidul regency.

scholarly journals ASPEK HUKUM PENILAIAN HARGA YANG WAJAR DALAM PERTUKARAN BARANG

to-ra ◽  
2015 ◽  
Vol 1 (2) ◽  
pp. 99
Author(s):  
Henry Donald Lombantoruan
Keyword(s):  
Exchange Process ◽  
Market Value ◽  
Financial Statements ◽  
Fair Value ◽  
Goods And Services ◽  
Principle Of Justice ◽  
The Difference ◽  
Economic Transaction ◽  
Special Assessment

Abstract   One of the main principles to ensure economic transactions more efficient and effective is the principle of justice felt by the economic actors. The principle of justice can only be realized if each economic actor mutually agreed upon value (value) of goods and services as well as the currency unit in every economic transaction. In other words, the exchange of (exchange) would not happen if there is no agreement on the value of the underlying economic exchange. In this case, efficient or not an economic system will be determined by how objects are interchangeable assessed. Conditions ‘over-valued’ or ‘under-valued’ of object-exchange will certainly make the transaction does not run efficiently and optimally. Conditions ‘over-valued’ will be very detrimental to consumers and profitable producer or seller. The difference in prices due to ‘over-valued’ is a reflection of the inefficiency of an economy, because consumers should get cheaper products and services. Exchange process in a transaction that took place between economic actors was based on the agreement the fair value of the goods and services both private and state. Fair value (fair value) is basically a reflection of the market value (Market value) of assets. When the fair value opinion generated by the Valuer carried out correctly, of course, will increase improve the quality of financial statements. This is because the value of corporate assets truly reflect the conditions (market value) up to date, so that the company’s assets will not be reported undervalued or overvalued. The problem is, until now we have not had conditions governing special assessment. No new judging partially regulated in the Capital Market Law, Banking and Insurance. In the case there are still many areas that need adjustment of business judgment. The question is, what arrangements benefit assessment?   Kata kunci: Aspek Hukum Penilaian Harga Wajar

scholarly journals Evaluating the quality of remote sensing products for agricultural index insurance

PLoS ONE ◽  
2021 ◽  
Vol 16 (10) ◽  
pp. e0258215
Author(s):  
Benson K. Kenduiywo ◽  
Michael R. Carter ◽  
Aniruddha Ghosh ◽  
Robert J. Hijmans
Keyword(s):  
Remote Sensing ◽  
Remote Sensing Data ◽  
Well Being ◽  
Insurance Contract ◽  
Index Insurance ◽  
Sensing Data ◽  
Insurance Contracts ◽  
The Impact ◽  
Economic Well Being

Agricultural index insurance contracts increasingly use remote sensing data to estimate losses and determine indemnity payouts. Index insurance contracts inevitably make errors, failing to detect losses that occur and issuing payments when no losses occur. The quality of these contracts and the indices on which they are based, need to be evaluated to assess their fitness as insurance, and to provide a guide to choosing the index that best protects the insured. In the remote sensing literature, indices are often evaluated with generic model evaluation statistics such as R2 or Root Mean Square Error that do not directly consider the effect of errors on the quality of the insurance contract. Economic analysis suggests using measures that capture the impact of insurance on the expected economic well-being of the insured. To bridge the gap between the remote sensing and economic perspectives, we adopt a standard economic measure of expected well-being and transform it into a Relative Insurance Benefit (RIB) metric. RIB expresses the welfare benefits derived from an index insurance contract relative to a hypothetical contract that perfectly measures losses. RIB takes on its maximal value of one when the index contract offers the same economic benefits as the perfect contract. When it achieves none of the benefits of insurance it takes on a value of zero, and becomes negative if the contract leaves the insured worse off than having no insurance. Part of our contribution is to decompose this economic well-being measure into an asymmetric loss function. We also argue that the expected well-being measure we use has advantages over other economic measures for the normative purpose of insurance quality ascertainment. Finally, we illustrate the use of the RIB measure with a case study of potential livestock insurance contracts in Northern Kenya. We compared 24 indices that were made with 4 different statistical models and 3 remote sensing data sources. RIB for these indices ranged from 0.09 to 0.5, and R2 ranged from 0.2 to 0.51. While RIB and R2 were correlated, the model with the highest RIB did not have the highest R2. Our findings suggest that, when designing and evaluating an index insurance program, it is useful to separately consider the quality of a remote sensing-based index with a metric like the RIB instead of a generic goodness-of-fit metric.

scholarly journals ANALISIS PERAN KARYAWAN DALAM HUBUNGAN ANTARA DUKUNGAN PIMPINAN DENGAN FEKTIVITAS SPIP DAN KUALITAS LAPORAN KEUANGAN

2018 ◽  
Vol 15 (1) ◽  
pp. 115
Author(s):  
Sudarno Sudarno
Keyword(s):  
Path Analysis ◽  
Financial Statements ◽  
The State ◽  
The Other ◽  
State Universities ◽  
High Quality ◽  
Accounting Standard ◽  
State Finance

The implication of issuance of Law No. 17/ 2003 on State Finance and Law No 71/ 2010 onGovernment Accounting Standard (SAP), the state universities have to compile and present finansial statements. The purposes of this research are to investigate factors which are affectingthe quality of finansial statement, the role of effectiveness SPIP to the effect of and to identify thecharacteristic of develop a finansial statement and level of leadership supported at state highereducation in Jawa Tengah and DI Yogyakarta. Population of this research was the accountingdivision responsible for preparing financial statements in 15 state universities in Jawa Tengahand DI Yogyakarta. Assuming each division had 7 staff; questionnaires were distributed by postsand couriers to 105 staff. Data from 67 respondents (63,81%) were analyzed by path analysis byusing PLS 2.0. This study supported the role of efectivness SPIP in developing a high quality offinansial statement. The commitment and motivation affects to quality of finansial statementindirectly through efectivness SPIP. However, this research has not enough evidence to said thatcompetency affects to efectivness SPIP. The other, The results of this study tend to supportmediation hypothesis that leadership supported affects to efectivness SPIP and quality offinansial statement indirectly through competency, commitment and motivation.

Measuring goodwill and noncontrolling interest under the new consolidation accounting standards

2017 ◽  
Vol 15 (2) ◽  
pp. 198-207
Author(s):  
James G.S. Yang ◽  
Frank J. Aquilino
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Accounting Standards ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Accounting Standard ◽  
Content Type ◽  
Net Assets ◽  
Practical Implications

Purpose The accounting standards for consolidated financial statements have been updated recently. The change involves the measurement of goodwill and noncontrolling interest. Under the new accounting standards, goodwill consists of not only the parent company’s portion but also the noncontrolling interest’s share. The noncontrolling interest comprises both the subsidiary’s identifiable net assets and goodwill. In addition, it further changes the treatment of noncontrolling interest from liability to equity. The change indeed has far-reaching consequences on financial statements. This paper formulates an equation to measure goodwill and noncontrolling interest. It also provides some examples for illustrative purposes. The purpose of this paper is to update the financial reporting to the current standards. Design/methodology/approach New accounting standards under FASB #141R and 160. Findings New accounting standards in measuring goodwill and noncontrolling interest in financial reporting. Research limitations/implications The knowledge is useful for accountants and financial analysts. Practical implications Improve the quality of financial statements. Social implications Investors will be better informed. Originality/value This new accounting standard was not explored before.

scholarly journals PENGARUH PENERAPAN STANDAR AKUNTANSI PEMERINTAHAN BERBASIS AKRUAL, SISTEM PENGENDALIAN INTERN DAN MOTIVASI KERJA TERHADAP KUALITAS LAPORAN KEUANGAN (Studi Kasus Pada Organisasi Perangkat Daerah Provinsi Papua)

2020 ◽  
Vol 14 (1) ◽  
Author(s):  
Vania Annissa Holle ◽  
Agustinus Salle ◽  
Mariolin Sanggenafa
Keyword(s):  
Control System ◽  
Internal Control ◽  
Work Motivation ◽  
Financial Statements ◽  
Accounting Standard ◽  
Financial Report ◽  
Analysis Technique ◽  
Internal Control System ◽  
Report Data

This research aims to analyze the influence of accrual-based accounting standard, internal control system, and motivation of work on the quality of financial statements. The population were in 34 departments in Papua Province. The samples of this study were 65 people. The research method was used purposive sampling with criterion are the heads and the staff of sub-divisions of finance who participating in making financial report. Data collection was done by distributing questionnaires directly to each departments in Province of Papua. The analysis technique was used multiple linear regression. This study concludes that accrual-based accounting standard, internal control system, and work motivation have positive and significant effect on the quality of financial statements

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