Insurance Company Accounting 1. Insurance Company Accounting 3

Principles and specifications of insurance companies for determining and measuring accounting elements

The accounting information sorting and processing process is actually a process in which the accountant confirms and measures the accounting elements of the accounting items, and presents the accounting creden。, accounting books, financial reports, and other carriers. To ensure the quality of accounting information, on the one hand, it is necessary to standardize the confirmation and measurement of accounting elements by accounting personnel, on the other hand, it is necessary to standardize the process of filling in accounting creden。, registering accounting books and preparing financial reports. Here, we only describe the principles and norms of the validation and measurement of accounting elements.

The confirmation and measurement of the accounting elements of insurance companies should generally follow five principles: principles of accrual system and implementation of pay-as-you-go, allocation principle, pricing based on actual costs, principles of revenue expenditure and capital expenditure, and the principle of prudence. Specifically, the principles of dividing income expenditure and capital expenditure and the principle of billing based on actual costs are used to regulate the confirmation and measurement of asset elements; the principles of accrual system and the Implementation System of pay-as-you-go, the ratio principle, the principle of prudence, and the principles of Income Expenditure and capital expenditure are used to regulate the confirmation and measurement of income and expense elements. As for liabilities and owner equity elements, they are often associated with asset elements or expense elements. If assets and expense elements are identified and measured, this completes the confirmation and measurement of the debt and owner equity elements.

(1) Principles of accrual and payment implementation

The accrual principle refers to the confirmation and measurement of income and expenses based on the actual occurrence and impact of income and expenses. The accrual principle mainly defines the basis of accounting confirmation in terms of time. Its core is to confirm the income and cost based on the actual occurrence and impact period of the accrual relationship. The accounting of income and cost based on the accrual principle can more accurately reflect the real financial status and operating results of a specific accounting period. Under the accrual basis, all income and expenses incurred or payable in the current period, regardless of whether the funds are received or paid, should be processed as the income and expenses of the current period; any income or fee that does not belong to the current period, even if the payment has been received or paid in the current period, shall not be regarded as the current income or fee.

The settlement implementation system refers to the confirmation and measurement of income and expenses based on the actual receipt and payment of income and expenses. Under the settlement and payment implementation system, all the income and expenses actually paid in the current period, regardless of whether the amount should be borne, should be processed as the income and expenses of the current period.

In general, property insurance companies and reinsurance companies should adopt the accrual system to confirm their income and expenses, while life insurance companies should adopt a mix of accrual and payment systems, that is, the pay-as-you-go system is adopted at ordinary times, and the accrual system is used for final accounts at the end of the year. The reasons why life insurance companies adopt both the accrual and payment-based systems are as follows: (1) Life insurance companies generally use cash transactions as business means. life insurance contracts are practice contracts, that is, the contract takes effect only after the first installment of the premium paid by the policyholder is received. The corresponding amount of the premium income must be confirmed only when the actual income is received. (2) because the accounting personnel do not understand the subject matter, for the liability reserve, it is impossible to calculate and record each order in detail at ordinary times, and it is impossible to generate accounting based on the accrual mechanism at ordinary times.

(2) ratio Principle

The ratio principle means that the operating income and the corresponding cost should be matched with each other. It requires that income and associated costs within an accounting period be recognized and measured during the same accounting period, the insurance company is required to measure the income and expenses of the current period based on the causal relationship between income and expenses in a certain period of time. Adhere to the ratio principle, so that various income and related expenses in each accounting period can be recorded and reflected in concert within the same period, which is conducive to correct calculation and Evaluation of business results.

(3) Historical Cost Principle

The property of an insurance company shall be measured based on actual costs. Afterwards, in the event of impairment of all properties, the corresponding impairment provision shall be accrued in accordance with the provisions of the system. Unless otherwise specified by laws, administrative regulations, and the unified national accounting system, enterprises shall not adjust their book value on their own.

Accounting: (1) historical costs are determined during transactions, which can objectively reflect economic business or accounting matters; (2) the historical cost is highly nuclear and can withstand tests. (3) historical cost data is easy to obtain.

(4) Principles of prudence

When conducting accounting, an insurance company shall follow the requirements of the principle of prudence, and shall not overwrite assets or income, but shall not overwrite liabilities or expenses, but shall not provide confidential preparation.

In China's Insurance Accounting Practice, the application scope of the principle of prudence is restricted by the country, currently, it is mainly used in methods such as accelerated depreciation of fixed assets, provision for bad debt, preparation for short-term investment depreciation, and provision for investment risk reserves.

(5) Principles of revenue expenditure and capital expenditure

The principle of dividing income expenditure and capital expenditure means that the accounting information should strictly distinguish the boundary between income expenditure and capital expenditure, so as to correctly calculate the profit and loss of the insurance company in the current period. Any benefit of expenditure that falls within the current year (or one business cycle) shall be used as an income expenditure; the benefit of expenditure and that of expenditure may fall within several fiscal years (or business cycles, should be used as capital expenditure.

Setting of Accounting Institutions of Insurance Companies

In order to scientifically and reasonably organize the accounting work of insurance companies, special accounting institutions should be set up. However, due to the different operation and management scales of different insurance companies and the complexity of financial revenues and expenditures, the cost-effectiveness principle should be followed to avoid the occurrence of situations such as overhead, the accounting law does not impose a "one-size-fits-all" requirement on the establishment of accounting institutions, but allows insurance companies to make decisions based on the "accounting business needs.

Staffing of accounting personnel of Insurance Companies

An insurance company that sets up an individual accounting institution must, of course, be equipped with both qualified and qualified accountants. Insurance company branches and business offices that do not have independent accounting institutions for small amounts of income and expenditure, simple accounting business, A number of full-time or part-time accounting personnel for accounting work should also be set up in the relevant institution. Such an organization is an internal institution that is close to financial accounting, such as a planning, statistics, or operation management department, or an internal comprehensive department that is conducive to playing a role in accounting.

Generally, the insurance company and its branch offices need to have budget, finance, accounting, taxation, and investment positions. Their responsibilities are as follows.

1. Budget responsibilities

(1) Prepare the overall fund budget of the insurance company;

(2) collect and compile and implement the business budgets of subsidiaries and the headquarters;

(3) collect the cost budget of the branch and branch offices, and prepare the total cost budget of the head office;

(4) Prepare and implement the capital expenditure budgets of the company and its subsidiaries.

2. Scope of duties of the financial position

(1) reasonably schedule funds between the company and its subsidiaries and subsidiaries;

(2) Supervise the reasonable use of funds of subsidiaries and subsidiaries;

(3) assisting or handling the external lending funds of subsidiaries and subsidiaries;

(4) analyze the fund distribution and use benefits of each branch and branch company.

3. accounting responsibilities

(1) Formulate accounting systems and operating rules for the headquarters, subsidiaries and subsidiaries;

(2) summarize the accounting reports of subsidiaries and subsidiaries, adjust the company's internal transactions and various types of accounting, and prepare the company's consolidated accounting reports;

(3) unified accounting analysis indicators and data collection standards;

(4) assess the operating benefits of each branch and its subsidiaries.

4. Tax duties

(1) grasp the implementation and changes of the tax laws of the subsidiaries and subsidiaries, and make corresponding adjustment measures or make suggestions to the board of directors of the company;

(2) assisting or handling the tax affairs of subsidiaries and subsidiaries;

(3) summarize the tax payable by the company's unit and analyze the benefits;

(4) coordinate tax matters between the departments of the company.

5. Investment responsibilities

(1) Investigate and predict investment projects and make feasibility study reports;

(2) analyze the benefits of the invested items and propose adjustment suggestions;

(3) handle other matters related to investment.

Personnel in charge of accounting organizations and accounting supervisors of Insurance Companies

The person in charge of an accounting institution and the person in charge of accounting is the person in charge of accounting within an organization. An accounting organization should appoint a person in charge in the accounting institution according to the prescribed procedures. This is not only an internal requirement for improving management efficiency, implementing responsibilities at all levels, and making accounting work orderly, it is also determined by the professionalism and Policy characteristics of accounting. Accounting is a very professional job. It requires accountants to record economic activities in a realistic and fair manner and provide accounting information, it will adversely affect the accounting work and impede the playing of the accounting function. If the accounting work is jointly managed by the persons in charge of another institution or other personnel who have no direct contact with accounting affairs, it will also affect the independence of accounting work and affect the normal development of accounting work. This regulation is in line with the actual situation of China's accounting work, and is conducive to strengthening accounting work and ensuring that accounting personnel exercise their powers in accordance with the law.