Research On The Accounting Measurement Of Insurance Liability

As the economy continues to develop and the process of globalization continues to speed up, risk and the uncertainty has become an existence which market economic system cannot eliminate. Insurance, as an important means of modern risk management operation in the economic social playing an increasingly important role. Insurance liability is an estimate which insurance company measures the future repayment amount and timing uncertainty based on insurance contract. Measurement of insurance contract reserve is a core issue in the field of insurance accounting research, but also the key to the accounting treatment of insurance contracts. Of China’s Ministry of Finance has issued "Accounting Standards for Enterprises No.25-original insurance contract,""Enterprise Accounting Standards No.26-Reinsurance contract","insurance companies accounting system" and "accounting rules related to insurance contracts" and many other rules and regulations to regulate the accounting measurement of insurance liabilities, basically achieved significant convergence with international accounting standards, improve the quality of accounting information in China’s insurance industry, but there are still many areas for improvement in recent years in view of the implementation. Therefore, the author depth explores the issues of accounting measurement of insurance liabilities, based on date support comes from implementation of the guidelines of the insurance listed companies.The article mainly uses the normative research methods, qualitative analysis and quantitative analysis. During the study, the author uses the theories and methods of insurance, economics, finance and accounting to analysis and evaluate the existing insurance liabilities accounting standards and their implementation, and explore the main issues and possible future direction of reform, combined the latest research progress in IASB measurement of insurance contract liabilities, in order to make modest contribution for our continued convergence of Insurance accounting standards.This article is divided into five parts:The first part, Introduction, includes induction or review of existing articles, proposes research contents and research methods, and points out the breakthroughs and limitations.The second part, the theoretical basis of measurement of insurance liabilities, introduces the theory related to the research, including insurance contracts and their classification, the special nature of insurance liabilities, recognition and measurement of insurance liabilities, and changes in domestic and international insurance accounting standards.The third part, select China’s listed insurance companies, analysis the current insurance contract accounting standards implementation. By overall statistics and specific examples to explain the situation of China’s listed companies to enforce current insurance contract accounting standards, and point out the problem in current accounting standards about the measurement of insurance liabilities on its own and execution, in order to prove the necessity of improving the implementation of the guidelines.The forth part, dynamic tracking IAS reform, and make the expected impact of new developments in the theory and practice that may arise. Point out positive significance and the new problems caused by the reform guidelines and the expected impact on China’s accounting practices, and then put forward a sound measurement of the insurance proposal.The fifth part, ending, summarizes whole article.Through these studies, I believe that insurance liabilities measured mode selection, adequacy tests, disclosure of insurance risk exists in terms of implementation of the guidelines. There is a need to strengthen the development of relevant standards and keep convergence with international accounting standards*and strengthen supervision and guidance relevant departments and improve the quality of accounting practitioners and independence of actuaries to ensure the effective implementation of accounting standards. The author expect this article could theoretically improve the built of insurance contract accounting standards, and in practice improve the quality of accounting information.