The Fair Value Of The Use Of Life Insurance Accounting

With the great development of insurance industry of China, theabundant and long-term capital owned by insurance industry will havegreat impact on the development of national economy and thestabilization of people's life. It has become the most attracted problem tosupervisor department and the statement users that how can the insurancestatement report the real financial condition comprehensively andtransparently. However, there are many shortages in the historical costmeasurement attribute in insurance industry presently, so that it isdifficult to meet the requirement. In recent years, fair value measurementattribute is used by international accounting standards and somedeveloped countries such as America and so on. It is also used widely inthe new accounting standards of China. The character of insuranceindustry makes fair value become the most suitable measurement attribute.This paper will discuss the using of fair value in the insuranceaccounting.This paper starts from the character of insurance assets and liabilities,and analyze the feasibility of using fair value in insurance assets andliabilities, then analyze how to do concretely, secondly, analyze thepresent situation and the reason, thirdly, discuss the impact to thestatement by using fair value, explain that it can improve the quality ofstatement and also can open out the problem of the lost from the wave ofthe interest rate of Chinese life insurance industry, then bring forwardsome proposals to improve the statement. In the end, this paper takeChina Life Insurance co.,ltd as an example, review the using of fair valuein this enterprise and put forward the author's suggestion.