Analysis About The Impaction On The Financial Results Of China’s Life Insurance Company Aroused By The Latest Changes In The International Insurance Financial Accounting Standards

Under economic globalization, in order to meet new development needs, the Chinese Accounting Standards are also making efforts to reform,and actively engaged with the implementation of international accounting standards convergence. China is the first country around the world to fully absorb and actively implement IFRS Ⅱ’s latest achievements.This article is based on this background, through the study of international insurance accounting standards, integrating the methods of literature analysis, comparative analysis and interdisciplinary research methods to further study the results of the reform of China’s new standards, and analysis of this series of reforms the financial results of China’s life insurance companies,and to find out the inadequacies of our new criteria and ultimately to promote the improvement of the accounting standards of China’s insurance and then provided advice and suggestions for our life insurance industry’s development.The first part of this text introduces the reform process of international insurance financial accounting; this paper expounds the main work this year to IASB, and the unfinished issues and hot issue. And introducing the evolution and development of our accounting process, from the process can also see that our country’s insurance financial accounting standards gradually get close to the internationalization.This part summarizes some changes of the new insurance accounting standards reforms in recent years in China, mainly in:the insurance contract’s definition, the premium income, fair value measurement attribute, the reserve enough test, and so on.The second part is the core part of this paper. According to the analysis of the above, this part of the detailed analysis that how the latest changes of the new standards to influence China’s life insurance companies’ financial results:income, cost, profit and assets, liabilities, and owners’ equity. After unbundling, life insurance companies’ premium income drops a lot,’but other income increases, which promote insurance companies, adjust their product structure. The acquisition costs will increase current costs of life insurance companies, reduce the profit of the current period, and even lead to new business losses, which goes against the high speed development of industry. Under the new standards, by profit source change, each companies’ profits fluctuation a lot, and its comparable will also be reduced. As to the liabilities, new reserve evaluation method of life insurance companies will reduce their liabilities. About the owner’s equity, the capital reserve is the biggest change.The third part of this paper analyzed the risk that the implementation of the new standard in our country is going to bring to our country’s life insurance industry. Such as financial reporting handling more, comparable lower, asset and liability mismatching, increase the cost of transforming, etc. This section also has put forward some suggestions to perfect our accounting standards. Such as making premium income caliber stricter, improving details of the reserve confirm measurement, and actively participating in the international insurance accounting standards’ discussion in order to reduce the cost of convergence, etc.The last part of this paper is some regulation and business strategy summaries of the two perspectives from regulators and the insurance company itself to deal with these changes, get stable development, such as improving insurance regulation to create a good environment for the development of China’s insurance industry, continuing to adjustment of product structure, improving the embedded value, and promoting the improvement of internal processes, etc.The main innovation of this paper is:Firstly, combined with the latest research of the International Accounting Standards, referring to a great deal of literature at home and abroad, this paper sums up the convergence and difference between China’s insurance accounting standards and international accounting standards. Secondly, with the comprehension of the main changes of new accounting standards and combination the financial statements of the three listed insurance companies, this paper analyzes how the new principles influence assets, liabilities, equity, income, expenses, profits, etc. of life insurance companies. Thirdly, in order to improve China’s insurance accounting policies, and to develop more operational and rational insurance accounting standards, this paper puts forward some personal insights for reference.Finally, the author also make efforts to analysis from the system and the theoretical level.But the new guidelines of the insurance accounting changes related to the professional and high complexity of accounting and actuarial theory, require a solid accounting knowledge and a deep knowledge of the actuarial. In the writing process, due to lack of knowledge and practical experience for some of the more complex content, such as reserve measurement, inextricably as understanding of the financial statements is not deep enough for some of the changes in the balance sheet which cannot exclude the impact of changes in the normal course of business. So this part of the analysis is still shallow, and not convincing enough, which needs to be further analyzed. So I needs all teacher s’ more advices for the inadequacies existing in the article.