International Insurance Financial Report Standard:the Latest Development And The Impact On Chinese Insurance Industry

With the further deepening of economic globalization, risk and its uncertainty has become a new normal. In recent years, various countries and various industries pay more and more attention to risk management of the enterprise. Under this background, the insurance industry which has the function of management and operation of risk has achieved rapid development. If there is no uniform insurance contract accounting standards, insurance companies in various countries will vary widely in accounting treatment, which also runs counter to the development trend of the insurance industry. The difference in insurance contract accounting can not provide a transparent, reliable and comparable accounting information for the insurance company. In addition, because the particularity exists in the insurance industry, insurance object has the characteristics of risk and uncertainty and the cost of insurance in the future, the traditional financial accounting cannot effectively solve the problem of accounting for insurance contracts. Therefore, the introduction of a unified insurance contract accounting standards is imperative and significant.The international accounting standards committee(hereinafter referred to as the IASC) the predecessor of the international accounting standards board( hereinafter referred to as the IASB) in response to various countries’ calls for, in 1997 began a discussion and research work of insurance contract accounting project. However, due to the complexity of the insurance contract accounting, IASB decided to divide the project into two stages, and achieved some results. The first stage is from 1997 to 2004, the stage results include the problem report in 1999, "the principle of announcement draft" in 2001 and 2004 of the International Financial Reporting Standards No. 4(hereinafter referred to as IFRS 4). The second stage is from 2004 to the present, the main result of this phase are mainly discussion paper released in 2007, draft in 2010 and 2013 the new draft. Every new results published are the IASB in solicit opinions widely, collect feedback advice, on the basis of repeated discussions and arguments on the results, is more mature and perfect.In recent years, China’s insurance industry has also been rapid development, and some insurance companies began to cross-border operations, as well as a number of insurance groups have listed at home and abroad. The development of insurance industry plays an enormous role in the overall economic development of our country, and the need of its international management. With the international convergence of accounting standards for insurance contracts, the macro and micro two aspects of the corresponding impact on China’s insurance industry. On the one hand, from the macro point of view, convergence can adjust the structure of China’s insurance industry, improve the comparability of accounting information, to eliminate the difference between domestic and foreign statements, and then adjust the competitiveness of China’s insurance companies. Some of the current accounting practice in our country, on the other hand, the processing of the requirements of accounting standards with international insurance contract has certain differences, for example, in terms of premium income, insurance contract reserve, discount rate and risk adjusted and contract services and marginal and so on, these will be to our country insurance company brings the certain effect of accounting treatment in the future. However, as long as pay close attention to the latest international dynamic, carefully comparing the differences between the two, after new rules will eliminate the negative influence of our country.The content of this article mainly includes the following several parts. The first chapter is the introduction, including the research background, significance, research status at home and abroad, the article structure and research methods, the main contributions and shortcomings of a total of five sections. The second chapter is the development process of the international insurance contract accounting standards, this chapter summarizes the development history of international insurance contract accounting standards, the main results of each stage were analyzed, and the main problems exist in each stage. The third chapter mainly discusses the main content of the 2013 draft, summarized the important topics of the 2013 draft, and comparing the main differences between the 2010 Exposure Draft and the 2013 Exposure Draft. The fourth chapter for international accounting standards on insurance contracts of insurance accounting to produce, due to the insurance contract has been working with international accounting standards convergence, thus the study of international accounting standards for insurance contracts will have an impact on our insurance contract accounting. The fifth chapter is the countermeasures and suggestions of this paper.