Инвестиции във финансови активи, обект на отчитане от застрахователните дружества
Investments in Financial Assets, Subject to Reporting by Insurance Companies

Author(s): Atanaska Filipova-Slancheva
Subject(s): Economy, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: insurance companies; investments in financial assets; IFRS 9 Financial Instruments
Summary/Abstract: Based on the fact that the investments of insurers are mainly in securities, any change in the accounting rules for reporting of financial assets will have a significant impact on the activities of insurers. In the initial application of IFRS 9 Financial Instruments, insurers‘ financial assets should be reviewed in terms of their proper classification into specific categories based on the objectives of the business model in which the financial assets are held and their agreed cash flows. That is why the purpose of this study is to present in general the implementation approach of the standard by insurers, while distinguishing the following five phases (stages): development of accounting policy regarding the reporting of financial assets; establishment of a system of accounts for the reporting of financial assets; reclassification of financial assets in view of the transition to the standard; calculating the effect of reclassification of financial assets; presentation and disclosure of the applicable accounting base and the effects of the transition process. Through an analysis of financial instruments investments of the Bulgarian insurance system for the period 2020 – 2021, the specific provisions arising from the transition to the new standard is presented.

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