Economics

Accounting and Auditing

Aldabergen Nazerke

2nd year undergraduate Kazakh National University. Al-Farabi, Almaty, Kazakhstan

FEATURES OF ACCOUNTING INTRODUCTION IN INSURANCE COMPANIES IN KAZAKHSTAN AND THEIR IMPROVEMENT

In recent years, insurance has become one of the fastest - growing areas of economic activity in Kazakhstan. To date, insurance affects to many areas of life. Insurance is very different from other types of business. Insurance activities aimed at protecting the property interests of individuals and legal entities upon the occurrence of certain events through cash funds generated by insurers premiums. Thus, the insurer's financial activities affect the interests of a significant number of persons. That is why knowledge of the characteristics of accounting of insurance companies, on the actual date.

In the framework of regulation of insurance companies by the National Bank developed: standard chart of accounts, as well as manual accounting operations in the insurance and reinsurance industries "general insurance" and "life insurance".

Chart of Accounts for the Republic of Kazakhstan was developed in accordance with the Law "On Accounting and Financial Reporting" and is designed to reflect the current groups and elements of financial statements in terms of value insurance (reinsurance ) companies, pension funds, institutions engaged in investment management of pension assets, organizations engaged in certain types of banking operations, insurance brokers, special financial companies and professional participants of the securities market of the Republic of Kazakhstan, the accounts for the compilation financial statements.

The instructions shall disclose information solely for the main insurance companies, including accounting for insurance reserves, assets, reinsurance, insurance claims recourse, reinsurance contracts, mandatory contributions and contingent liabilities on the Fund guarantee insurance payments, insurance broker services, contracts of life insurance, loans granted and annuity insurance contracts. The financial statements of insurance companies is also regulated by normative legal acts of the National Bank, which determine the form, manner and timing of its submission to the FSA, and the timing of the publication in mass media. Currently, insurance companies in accounting and financial reporting standards are used, issued by the IASB.

Responsibility for accounting, compliance with legislation in the insurance operations shall be the head of an insurance company. The main task of accounting - contribute to high positive business results. The main functions performed by the accounting department of the insurance company the following: accounting insurance operations (direct insurance and reinsurance); the payments of wages; accounting reserves; accounting of operations; Accounting of the main activity, other income and expenses; records of financial results; preparation of financial statements.

Accounting system based on the following internationally accepted methods: continuous documentation; inventory; generalizations of information in the accounts; double entry; Balance Sheet and reporting. The insurance company is implementing the accounting organization, can independently set: accounting policies; organizational form of the accounting work; form and methods of accounting, accounting information technology processing; internal (management) accounting, reporting and control .

In accordance with these documents under the accounting policies selected insurance company understood its totality accounting methods - primary observation of cost measurement, the current grouping and summarizing the outcome of economic activity.

As part of accounting policies must be approved by:

- Working chart of accounts containing synthetic and analytical accounts required for accounting in accordance with the timeliness and completeness of accounting and reporting.

- Forms of primary accounting documents used to process business transactions, which are not provided standard forms of primary accounting documents and forms of documents for internal reporting;

- Procedures for inventory and assessment methods types of assets and liabilities;

- Rules of document processing technology and accounting information;

- Process for monitoring business transactions, as well as other decisions necessary for the organization of accounting.

Thus, the accounting policies of the insurance company must contain two main groups of questions: Organizational and technical; Methodical .

When the accounting policy of the insurance company on the specific issue of reference and organization of accounting is used to select one of several methods of accounting permitted by the laws and regulations.The financial statements of insurance companies and regulated by normative legal acts of the NBK, which determine the form, manner and timing of its submission to the Committee of Financial Supervision and the timing of its publication in mass media. Primary income account of the insurance company premiums, which are both the foundation for further circulation of its facilities, as well as sources of investment financing.

Insurance premium is the price of the sale of insurance services. The basis of calculation of premiums is the insurance rate. The volume of insurance premiums determines the magnitude of the insurance fund, and the structure of the tariff rate - uses of the fund. Thus, insurance payments received by an insurance separately taken distributed in strict accordance with the structure of the tariff rate.

Accounting tasks premiums and indemnity payments:

- Timely and proper documentation of transactions to receive premiums and pay the insurance indemnity;

- Control over the distribution of the amount of contributions in accordance with the structure of the insurance rate for the correctness of the payment and reimbursement.

Accounting entries made at the time when the right to receive from the insurer of the insured the premium arising from the specific conditions of the insurance contract or otherwise confirmed.

If the terms of the contract of insurance relating to life insurance premiums are paid periodically, accounting entry is made at the time when the right of the insurer to receive the next installment.

If in fact the insured event produced a result, the document is available on the outcome of the investigation. These documents must be signed and sealed.

The main task of accounting - contribute to positive business results.

In connection with the development of the financial sector for insurance companies open up new markets, such as the securities market, derivatives, hedging transactions in foreign currencies and so on. In this regard, accounting for investment activities of insurance companies provided instruction on accounting transactions on placement of money in deposits, loans, securities, derivatives, refined precious metals, foreign currency hedging transactions, as well as repo and reverse repo.

It should be noted that the National Bank are working on further improvement of accounting and insurance organizations to conduct seminars and trainings on IFRS for employees of the insurance sector of the country.

Despite, some progress in the development of accounting and reporting have serious problems. For example, some regulations on accounting for insurance operations (position on accounting for insurance operations) don’t sufficiently address the issues of formation of the financial statements of the insurance organization, and some regulations on accounting are contradictions.

The second problem is that the Russian accounting statements is mainly focused on the needs of the state (and to oversee the formation of the tax base) and do not reflect to objective of business information users do not see it in the insurance business reporting companies. Investors, before you invest your money, need to understand what is behind the calculation of reserves and assets of insurers. If the economy and the financial statements will not be clear to them, the Kazakh insurance market can’t develop.

Currently there are favorable conditions for further development of accounting and reporting in the Republic of Kazakhstan. Enacted legal acts are covering the majority of the objects of accounting and reporting. In the professional community has accumulated certain skills and experience of accounting and reporting in market conditions.

The purpose of the development of accounting in insurance companies is to create acceptable conditions and prerequisites for the successful implementation of a consistent and system of accounting and reporting functions inherent in the economy of Kazakhstan. In particular, the generating function of information about the activities of organizations useful for economic decision-making stakeholders internal and external users.

Further development of the accounting and reporting necessary to carry out the following main areas:

- Improving the quality of information generated in the accounting and reporting;

- Creation of an infrastructure of IFRS;

- Change in the system of accounting and reporting;

- Essential skills development, employment and organization accounting and reporting.

Accounting for insurance should be developed as part of a unified system of accounting and reporting in the Republic of Kazakhstan, which also includes statistical and operational-technical account. The most important factor in ensuring the unity of this system is the primary account as a source of data for subsequent storing, organizing and summarizing them in accordance with the objectives, requirements and methodology for each type of accounting.

So, in order to increase the effectiveness of accounting in insurance organizations, especially, should pay attention to the regulations, accounting control system , qualifications of employees, development of training programs and study accounting standards IFRS as the basis for further development of accounting and reporting review, reassessment and reform the current system of accounting and reporting in the insurance industry, as well as accounting methodology insurance operations and the underlying (recognition) in the accounting records of specific objects of insurance activity. This will revise the order of construction and formation of indicators of financial, statistical reporting of insurance companies, change the assessment of their performance, refocusing on international practice.

Literature:

1. The Law of the Republic of Kazakhstan "On Accounting and Financial Reporting" from February 28, 2007

2 . Law of the Republic of Kazakhstan dated December 18, 2000 № 126 -II on insurance activities (with alterations and amendments as of 21.06.2013g . )

4 . The Law "On insurance activity" from December 18, 2000 , № 126 - II SAM .

5 . Conceptual framework of the Ministry of Finance of the Republic of Kazakhstan dated 29 October 2002. Number 542 , " Framework for the preparation and presentation of financial statements "

6. Resolution of the National Bank of Kazakhstan dated November 28, 2008 № 97 Instruction on accounting transactions insurance and reinsurance industries in "general insurance" and "life insurance"

7. Erdavletova FK Accounting and auditing of financial institutions : Textbook. - Almaty. - 2013 . - 312 .

8. Dzhempeisova GI Chikunov ON, SN Sүyeubaeva Saқtandyru : Oқu құraly . - Almaty. - 2010 . - 250 b .