Conceptualization of Management Accounting of Life Insurance Companies
The conceptual framework for the organization of management accounting of life insurance companies is defined. There given the main differences between management accounting and financial accounting based on the following criteria: purpose of accounting, users of information, degree of accessibility...
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| Format: | Article |
| Language: | English |
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PH "INZHEK"
2019-06-01
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| Series: | Problemi Ekonomiki |
| Subjects: | |
| Online Access: | http://www.problecon.com/export_pdf/problems-of-economy-2019-2_0-pages-157_163.pdf |
| _version_ | 1827363485083762688 |
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| author | Kryvytska Olha R. |
| author_facet | Kryvytska Olha R. |
| author_sort | Kryvytska Olha R. |
| collection | DOAJ |
| description | The conceptual framework for the organization of management accounting of life insurance companies is defined. There given the main differences between management accounting and financial accounting based on the following criteria: purpose of accounting, users of information, degree of accessibility, statutory or not, basic structure, principles of accounting, type of information, degree of responsibility for mistakes made, objects of accounting and reporting, time interval, accuracy of information provided, documentation, reporting frequency, cost grouping, data openness, scope of application. It is determined that the criteria for management accounting of life insurance companies are: brevity; efficiency; comparability; expediency, neutrality; benefit from using. The expediency of distinguishing the preventive function of management accounting, which is aimed at timely identification of threats associated with deterioration of financial stability and solvency of companies of this type by the company’s managers, is proved. The centers of responsibility of management accounting are detailed and their positioning is schematically reflected in the organizational structure of life insurance companies. It is proposed that the responsibility centers be concentrated within the framework of the main (insurance) activity with singling out the centers for working with: contracts which envisage reaching by the insured a certain retirement age stipulated by the contract; life annuity contracts, insurance against the risk of disability or death of a non-state pension fund participant; cash-value life insurance policies; life insurance contracts only in case of death; other life insurance contracts. The emphasis is placed on the appropriateness of using automated information systems which will facilitate rapid processing of a large array of data from a life insurance company, save time and contribute to timely adoption of rational management decisions. |
| first_indexed | 2024-03-08T07:50:45Z |
| format | Article |
| id | doaj.art-559497e7b3a843de9697a9e6d41cb87b |
| institution | Directory Open Access Journal |
| issn | 2222-0712 2311-1186 |
| language | English |
| last_indexed | 2024-03-08T07:50:45Z |
| publishDate | 2019-06-01 |
| publisher | PH "INZHEK" |
| record_format | Article |
| series | Problemi Ekonomiki |
| spelling | doaj.art-559497e7b3a843de9697a9e6d41cb87b2024-02-02T14:46:14ZengPH "INZHEK"Problemi Ekonomiki2222-07122311-11862019-06-0124015716310.32983/2222-0712-2019-2-157-163Conceptualization of Management Accounting of Life Insurance CompaniesKryvytska Olha R. 0The National University of Ostroh AcademyThe conceptual framework for the organization of management accounting of life insurance companies is defined. There given the main differences between management accounting and financial accounting based on the following criteria: purpose of accounting, users of information, degree of accessibility, statutory or not, basic structure, principles of accounting, type of information, degree of responsibility for mistakes made, objects of accounting and reporting, time interval, accuracy of information provided, documentation, reporting frequency, cost grouping, data openness, scope of application. It is determined that the criteria for management accounting of life insurance companies are: brevity; efficiency; comparability; expediency, neutrality; benefit from using. The expediency of distinguishing the preventive function of management accounting, which is aimed at timely identification of threats associated with deterioration of financial stability and solvency of companies of this type by the company’s managers, is proved. The centers of responsibility of management accounting are detailed and their positioning is schematically reflected in the organizational structure of life insurance companies. It is proposed that the responsibility centers be concentrated within the framework of the main (insurance) activity with singling out the centers for working with: contracts which envisage reaching by the insured a certain retirement age stipulated by the contract; life annuity contracts, insurance against the risk of disability or death of a non-state pension fund participant; cash-value life insurance policies; life insurance contracts only in case of death; other life insurance contracts. The emphasis is placed on the appropriateness of using automated information systems which will facilitate rapid processing of a large array of data from a life insurance company, save time and contribute to timely adoption of rational management decisions.http://www.problecon.com/export_pdf/problems-of-economy-2019-2_0-pages-157_163.pdfmanagement accountinglife insurance companyresponsibility centersmanagement accounting functionsinformation systems |
| spellingShingle | Kryvytska Olha R. Conceptualization of Management Accounting of Life Insurance Companies Problemi Ekonomiki management accounting life insurance company responsibility centers management accounting functions information systems |
| title | Conceptualization of Management Accounting of Life Insurance Companies |
| title_full | Conceptualization of Management Accounting of Life Insurance Companies |
| title_fullStr | Conceptualization of Management Accounting of Life Insurance Companies |
| title_full_unstemmed | Conceptualization of Management Accounting of Life Insurance Companies |
| title_short | Conceptualization of Management Accounting of Life Insurance Companies |
| title_sort | conceptualization of management accounting of life insurance companies |
| topic | management accounting life insurance company responsibility centers management accounting functions information systems |
| url | http://www.problecon.com/export_pdf/problems-of-economy-2019-2_0-pages-157_163.pdf |
| work_keys_str_mv | AT kryvytskaolhar conceptualizationofmanagementaccountingoflifeinsurancecompanies |