PROCEDURE FOR THE FORMATION, ACCOUNTING AND INTERNAL INSURANCE RESERVE CONTROL

Olha Puhachenko

Abstract


Introduction. Modern trends in the development of Ukrainian insurance market, new insurance risk formation, the disadvantages of formation, use and placement of insurance reserves, peculiarities of accounting and its internal control determine the need of improving the insurance reserve management. This issue is an up-to-date one in terms of current development of the economy of Ukraine. Methods. The study is based on analysis technique. Generalization and grouping methods are used in the paper. The study investigates insurance reserve formation and the development of the working papers of the internal controller by applying the method of graphical representation. The determination of the economic content of "insurance reserves" concept and the legislative regulation of insurance reserves formation was based on historical and comparative method. Results. The author demonstrated the results of insurance men activities at the financial service market in Ukraine based on information about insurance reserves. The definition of insurance reserves according to various literary sources is given. The main legislative acts on insurance reserve formation are analysed. The mechanism for technical reserve formation and life insurance reserve formation is shown. The paper considers the procedure for accounting of insurance reserves according to the current methodology. The structure and content of the additional balance sheet items (statement of financial position) for insurance men is described. The method of the internal control of insurance reserves based on selection of information sources, control procedures and measure characteristics in the accounting and reporting is developed. The implication of this paper is an attempt to demonstrate the forms of working papers of the internal controller in terms of the insurance reserve auditing. Discussion. The evidence from this study suggests further research on improvement proposal of organization and methodology of insurance reserve accounting and methodology of internal control over insurance men activities.

Keywords


insurance reserves; insurance men; accounting; internal control; accounting methodology; additional working papers; auditing; working papers of the internal controller

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References


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DOI: https://doi.org/10.35774/ibo2017.03.051

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