| The twenty years just passed by saw an exponential growing of China life insurance with achievements that is sufficient to attract the focus all over the world. The topic of how to exert the service function of life insurance accounting at full speed is tightly followed on this rapid increase, for It is well known that "the more developed the economy is, the more important accounting is". Since risk-the operation object in life insurance company is quantified by means of life actuary, it is inevitable for actuary to be involved with accounting which serve as a successive, systematic and comprehensive monitor on the activities of life insurance company. Actuary measures uncertainty of future based on the principle "the information for yesterday's evaluation play the same role for tomorrow's plan". Since most of the information on operation activity in the past is provided by life insurance accounting, the actuary must be armed with knowledge of accounting. The unfamiliarity for staffs of actuary or accounting department with the knowledge of the other domain will ultimately bottleneck the development of life insurance in our country, as a result of the hampered service function of actuary and accounting. Based on the conclusion above mentioned, the author attempts to analyze the inherent correlation between accounting and actuary in life insurance company, holding the inner motive to provide a brand-new approach to the system reformation of insurance accounting and the construction of actuary institution in our country. As far as the details in life insurance company are concerned, the author hopes this analysis function as catalyst to coordinate the cooperation between accounting department and actuary department to ensure the stability of company finance and operation activity. This paper sets about analyzing and discussing the correlation between accounting and actuary. This implies that two aspect of one question will be involved in, one is the necessity of actuary for accountingpractice in life insurance companies, and the other is the contrary. The first aspect was illuminated by actuary's position and functions on accounting, which is streamlined by the logic line of accounting technology: accounting recognition, accounting measure and accounting disclosure. The second aspect was lighted by accounting's impact and influence on actuary, which is streamlined by actuarial practice: price, liability evaluation, solvency management and the analysis of profit source. The cantus of this paper contains nothing but the two aspects above mentioned. Practice is base on theory, so do the discussion on those aspects. The author will give a brief introduction on the involved accounting system, insurance accounting theory, actuary system and actuary theory, taking them as the theory foundation for the discussion and analysis on accounting and actuary. On the other hand, the ultimate value of theory is to enlighten practice, according to this point, the author will inspect the relationship between accounting and actuary in the life insurance companies of our country. The absence of complementarity between the two will lead to a deeper discussion for the reason and the critical path if we attempt to establish a complementary relationship between them. This is the basic thinking of the paper.Following are the main idea and content of this paper:1 Life insurance company accounting integrates life insurance accounting theory and life insurance accounting practice. As the basic rule and reference for accounting ledge in life insurance company, life insurance accounting system is the regularized files, evoluted in the practice based on accounting objective, accounting assumptions and accounting principles. Standards are intensively condensed theory. There are two principles to regularize behaviors of life insurance company: General Accepted Accounting Principle (GAAP) and Statutory Accounting Principle (SAP). Both of them are basement of accounting method and report method selection for life insurance companie... |
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