Accounting practice improvement and increasement in level of comparability for the data reporting for insurance companies

In this article the issues of improving accounting for insurance companies are considered according to IFRS-17. The new standard on accounting of contracts for insurance makes cardinal changes to the international order of accounting for insurance contracts. It establishes the principles of recognition, assessment, representation and disclosure of contracts for insurance and replaces IFRS-4 «Contracts of insurance». Nowadays reporting, prepared on the basis of IFRS-4 makes the comparison very difficult for insurance companies for investors. IFRS-17 demands consecutive accounting for all insurance contracts on the basis of model of the ongoing measurements. The model of the ongoing measurements and the sequence will help investors to carry out the analysis, allowing them to easily compare profitability for insurance companies. Separate presentation of results on underwriting activity and financial results will provide greater transparency regarding sources of profit and qualitative characteristics of the reported profit. A higher comparability of the reporting data could stimulate the growth of activity in the field of mergers and acquisitions, raise the level of competition for investment capital and help gain investor confidence. For many insurance companies, the task becomes more complicated because the time horizon of insurance contracts is very long, and the systems used by many companies are somewhat outdated.

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1. International financial reporting standard IFRS-4 «Insurance Contracts» 2015. Access regime: http://online.zakon.kzfrom July 1, 2018.

2. IFRS-17. Access regime: https://www2.deloitte.com/ru from July 13, 2018.

3. Oleg Luzginov. Contracts аccounting for insurance: time for preparation, 2016. Access regime: https://msfo-practice.ru/ from July 5, 2018.

4. IFRS-9. Access regime: https://www2.deloitte.com/ru from July13, 2018.

5. IFRS Vestnik. Access regime: www.pwc.kzfrom July 13, 2018.

6. IFRS-15. Access regime: https://www2.deloitte.com/rufrom July 1, 2018. I7 FRS for insurance companies. Access regime: https://gaap.ru/articles/MSFOfrom July 10, 2018.