GENERAL MODEL APPROACH OF MEASUREMENT APPROACHES UNDER IFRS 17 INSURANCE CONTRACTS AND AN APPLICATION

Yıl 2019, , 190 - 215, 09.02.2019

Mustafa Oğuz

https://doi.org/10.14783/maruoneri.vi.522066

Cited By: 2

Öz

Accounting is
the process of recording, classifying, reporting, analyzing and interpreting
the fi­nancial transactions. This process is intended to provide useful
information about a business entity’s financial status to users of financial
statements. In Turkey, accounting is governed by a common set of accounting
rules. These are basic concepts of accounting, generally accepted accounting
princip­les, national and international accounting and financial reporting
standards and legislation provisions. Ministry of Treasury and Finance, Capital
Markets Board of Turkey and Public Oversight Accounting and Auditing Standards
Authority currently require publicly owned companies to follow these rules.
Over time, all these organizations aim to align their regulations with
International Accounting and Fi­nancial Reporting Standards (IASs and IFRSs).
Since 2001, the International Accounting Standards Board (IASB) has worked on a
set of these global standards. The IASB is an independent internatio­nal
accounting standard setter based in London. On 18th May of 2018, the IASB
issued a new stan­dard on insurance contracts. This new Standard, IFRS 17
Insurance Contracts, establishes a new ac­counting model and new disclosure
requirements. IFRS 17 can be seen as one of the most significant changes to
insurance accounting. It establishes principles for the recognition,
measurement, presenta­tion and disclosure for insurance contracts issued,
reinsurance contracts held and investment contra­cts with discretionary
participation features issued. The objective of IFRS 17 is to ensure that
entities provide relevant information in a way that faithfully represents
insurance contracts. This information gives a basis for users of financial
statements to evaluate the effect that contracts within the scope on the
financial position, financial performance and cash flows of an entity. IFRS 17
should be applied for annual periods beginning on after January 1, 2021. IFRS
17 shall supersede the previous IFRS 4 Insu­rance Contracts. According to the
IASB, IFRS 4 was an interim standard that did not provide transpa­rent and
comparable information about the effect of insurance contracts on financial
statements. The previous standard also allowed entities to use their national
accounting requirements. So, the IASB undertook a project to make insurers’
financial statements more transparent, comparable and consis­tent. IFRS 17 is
the result of this project. IFRS 17 brings a lot of innovative and important
changes to insurance accounting. One of these changes is about measurement
approaches. According to IFRS 17, there are three different measurement
approaches: the General Model Approach (the Building Block Approach), the
Premium Allocation Approach and the Variable Fee Approach. The General Model
Approach is the basic model that is applicable to all insurance contracts and
is based on a series of four building blocks. The first building block is the
estimation of future cash flows. IFRS 17 requires in­surance companies to
estimate cash flow for an insurance contract. The second building block is dis­count
rate. The Standard requires insurance companies to use discount rates based on
market rates of the same currency, duration and level of liquidity. The third
building block is risk adjustment. Risk adjustments should represent the
compensation that the insurer requires for bearing the uncertainty in the
amount and timing of the cash flows. The fourth building block is the
contractual service mar­gin. The contractual service margin is a component of
the carrying amount of the asset or liability for a group of insurance
contracts representing the unearned profit that the entity will recognize as it
pro­vides services under the insurance contracts in the group. According to the
Standard, no gains are re­cognized in profit or loss at the inception of the
contract because any of contract’s performance obli­gations has not been
satisfied yet. For this reason, the contractual service margin cannot be
negative either at issue or subsequently. If the contract is onerous, then the
contractual service margin is equal to zero. IFRS 17 allows the spreading of
profits on insurance contracts over their duration. If the cont­ractual service
margin is decreasing, then the losses should be recognized immediately. If it
is decrea­sing, then the profits should be firstly used to compensate previous
losses and the remaining amount should be recognized. The contractual service
margin should be amortized over the duration of a contract. Recognizing the
contractual service margin over the duration of a contract should be on a
systematic basis that reflects the remaining transfer of services and interest
should be accreted to ref­lect the time value of money. The objectives of this
study are to introduce the General Model Appro­ach theoretically and show how
the value of an insurance contract should be measured, accounted and reported
under this approach.

Anahtar Kelimeler

IFRS Insurance Contracts, General Model Approach, Building Block Approach

UFRS 17 SİGORTA SÖZLEŞMELERİ KAPSAMINDA ÖNGÖRÜLEN ÖLÇÜM YAKLAŞIMLARINDAN GENEL MODEL YAKLAŞIMI VE BİR UYGULAMA

Öz

Sigorta muhasebesi, sigorta sektöründe faaliyet gösteren şirketlerin muhasebe uygulamalarını ve finansal raporlamalarını içeren sektörel bir muhasebe sistemini yansıtmaktadır. Bir ihtisas muhasebesi olarak sigorta muhasebesi, uzmanlık isteyen ve sigortacılık sektörünün iyi bir şekilde anlaşılmasını gerektiren özellikli bir muhasebe dalıdır. Türkiye’de sigorta muhasebesine yön veren çeşitli düzenlemeler bulunmaktadır. Bunların başında Hazine Müsteşarlığı tarafından yayımlanan düzenlemeler gelmektedir. Bu düzenlemeler haricinde muhasebenin temel kavramları, genel kabul görmüş muhasebe ilkeleri, Maliye Bakanlığı tarafından uygulanması öngörülen düzenlemeler, Sermaye Piyasası Kanunu kapsamında uygulanması öngörülen düzenlemeler gibi düzenlemeler de bulunmaktadır. Ancak zaman içerisinde gelişen ve ülkemizde de sigorta şirketleri tarafından uygulanması zorunlu olan Uluslararası Muhasebe ve Finansal Raporlama Standartları (UMS ve UFRS’ler), sigorta muhasebesine yön veren düzenlemeler içerisinde ayrı bir öneme sahiptir. Uluslararası Muhasebe Standartları Kurulu tarafından yayımlanan UMS ve UFRS’lerden biri de UFRS 17 Sigorta Sözleşmeleri Standardı’dır. UFRS 17, sigorta sözleşmelerinin muhasebeleştirilmesi ve raporlanmasına yönelik alışılagelmiş uygulamaları kökten değiştirecek yeni birtakım özellikler içermektedir. Bunlardan biri de sigorta sözleşmelerinin muhasebeleştirilmesi ve raporlanmasında esas alınması gereken ölçüm yaklaşımlarıdır. Bu çalışmada söz konusu ölçüm yaklaşımlarından Genel Model Yaklaşımı tanıtılacak olup, bu yaklaşıma ilişkin örnek bir uygulamaya yer verilecektir.

Anahtar Kelimeler

UFRS 17 Sigorta Sözleşmeleri, Genel Model Yaklaşımı, Blok Yapı Yaklaşımı

Kaynakça

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