Accounting Standards for Finite Risk Reinsurance Contracts
| Autor: | Fei-Wen Kuo, 郭斐雯 |
|---|---|
| Rok vydání: | 2007 |
| Druh dokumentu: | 學位論文 ; thesis |
| Popis: | 95 The finite risk reinsurance contract can provide many benefits for an insurance company''s operation, such as transferring financial risk, and maintaining stability of surplus. Unfortunately, few scandals are relevant to misuse of finite risk reinsurance contracts. This misuse is partly relevant to incomplete accounting standards. This study investigates what contents should be included in accounting standards for finite reinsurance contracts. By use of literature analysis, some results are as follows: 1.For accounting purpose, the insurer must determine whether a finite risk reinsurance contract involves in the actual transfer of insurance risk and shall be based on the present value of all cash flows between the ceding and assuming companies, then identify the components of insurance risk transfer and risk financing separately to be addressed in the actuarial report. 2.If the finite risk reinsurance contract does not meet the criteria for significant insurance risk transfer, it can not be accounted for as reinsurance, rather it should be accounted for as a loan or deposit. 3.Assets generated from finite risk reinsurance contract should be reported in the financial statements using gross amounts. 4.The insurance companies must publicly disclose all information regarding finite risk reinsurance contract in their financial statements and company websites. |
| Databáze: | Networked Digital Library of Theses & Dissertations |
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