Accounting in an insurance company posting. How is accounting done in insurance?
3.2 Accounting for direct insurance transactions
The main activity of insurance organizations is the provision of insurance services. According to the Law of the Russian Federation “On the organization of insurance business in the Russian Federation,” insurance is a relationship to protect the property interests of individuals and legal entities upon the occurrence of certain events (insurance events) at the expense of monetary funds formed from insurance premiums (insurance contributions) paid by individuals.
In this regard, the most important task of accounting in insurance organizations is the correct, timely and complete reflection of information on concluded insurance contracts, on due and received insurance premiums (contributions), on formed insurance reserves, as well as on declared losses and insurance payments made. The solvency of the organization, its financial stability and the ability to timely fulfill obligations under insurance contracts largely depend on the success of solving this problem.
Based on this, the main accounting tasks are considered to be:
Checking for correctness documentation and the legality of insurance transactions;
Checking the correctness of the conclusion of insurance contracts and the validity of insurance payments;
Monitoring the correctness of the journal of concluded insurance contracts and the journal of losses;
Ensuring the timeliness, completeness and accuracy of settlements under insurance contracts, as well as settlements with insurance agents and insurance brokers;
Ensuring the correct formation of insurance reserves;
Finding opportunities for the most rational investment of assets covering insurance reserves on conditions of liquidity, profitability and reliability;
Monitoring the timeliness and completeness of fulfillment of obligations under insurance contracts;
Reliable reflection in accounting registers of information about received insurance premiums, formed insurance reserves, as well as about insurance payments made for each type of insurance.
In addition, an important task of accounting workers is to provide necessary information to the management of the organization and to the insurance departments, as well as reliable and timely provision of information to the insurance supervisory authority about insurance premiums, insurance payments, etc.
Insurance fee. In accordance with Art. 11 of the Law of the Russian Federation “On the organization of insurance business in the Russian Federation” insurance premium is the insurance fee that the policyholder is obliged to pay to the insurer in accordance with the insurance contract (for voluntary insurance) or the law (for compulsory insurance).
Depending on the types of insurance and how it is carried out in practice, the insurance premium is also called the insurance payment, and cash, received to the insurer’s account for insurance operations from policyholders, is an insurance premium.
Property interests protected by insurance are very diverse. These are buildings, equipment, loss of earnings, compensation for damage caused, etc. It is impossible to satisfy them with compensation in kind. Only money can be a universal means of satisfying insurance needs. Hence, the resources that insurers must have to ensure their insurance obligations can also be formed only in cash. Consequently, insurance premiums must be paid in money. Although in practice there are cases of paying insurance premiums with securities and other property, which is not prohibited today current legislation.
The receipt of insurance premiums (insurance contributions) is the main source of income for an insurance organization, and the main indicators of the insurer’s activities – profit, the size of insurance reserves, etc. – depend on their volume.
To record the receipt of insurance payments under insurance contracts, balance sheet account 92 “ Insurance premiums(contributions).”
Under the cash method, incoming insurance premiums (contributions) are reflected on the credit of account 92 in correspondence with the debit of the accounts accounting for the corresponding funds by posting:
Debit 50 “Cash desk” (51 “Cash account”, 52 “Currency account”) Credit 92 “Insurance premiums (contributions)” for the amount of the insurance premium received at the cash desk (to the current account, currency account) of the insurance organization.
When using the accrual method, balance sheet account 77 “Settlements for insurance, coinsurance and reinsurance”, subaccount “Settlements for insurance premiums (contributions) with policyholders” are used. At the same time, the debit of this account records the accrued amounts of insurance premiums due to be credited to the accounts or cash desk of the insurance organization on the basis of concluded insurance contracts (policies), in correspondence with account 92.
The following entries are made in accounting:
Debit 77 “Settlements for insurance, coinsurance and reinsurance”, subaccount-1 “Settlements for insurance premiums with policyholders”
Credit 92 " Insurance premiums(premiums)” for the amount of the insurance premium due upon receipt by the insurance organization, in accordance with the concluded insurance agreement.
The actual receipt of funds for payment of insurance premiums (contributions) is reflected by the posting:
Debit 50 “Cash” (51 “Currency account”, 52 “Currency account”) Credit 77 “Insurance settlements”, sub-account “Settlements for insurance premiums with policyholders”.
Example. On December 1, 2004, OJSC IC Avtostrakh entered into an agreement on compulsory motor liability insurance with car owner A.B. Sergeev for a period of 1 year. Insurance premium in the amount of 4000 rubles. was paid in cash upon conclusion of the contract. October 21, 2005 A.B.’s car Sergeeva got into an accident and was damaged. On November 29, 2005, IC Avtostrakh paid insurance compensation under the MTPL agreement in the amount of 20,000 rubles.
The accountant of IC Avtostrakh made the following entries in the accounting:
Debit 77-1 Credit 92-1
– 4000 rub. – the insurance premium has been calculated;
Debit 50 Credit 77-1
– 4000 rub. – insurance premium received;
Debit 22-1 Credit 50
– 20,000 rub. – insurance compensation has been paid.
At the same time, information about due and received insurance premiums (contributions) is recorded in the Journal of concluded insurance contracts, the form of which is given in the table. 3.1. This journal is formed for each type of insurance provided by the insurance organization, and for each type of currency in which the insurance is carried out.
During the validity period of the insurance contract, changes may be made to it at the initiative of the policyholder. They are usually associated with an increase in the sum insured or an expansion of the list of services covered by the contract. As a result, the amount of the insurance premium (contribution) under the contract may increase (decrease).
In the event of an increase in the insurance premium (contribution) in the accounting accounts, an additional amount of the insurance premium is calculated:
Debit 77-1 Credit 92-1 – additional amount of insurance premium has been accrued.
If the amount of the insurance premium is reduced, it is necessary to clarify in what period the terms of the insurance contract are changed.
Let’s say that changes to the contract were made in the same reporting period (year) when it was concluded and came into force. Then the amount of reduction in the insurance premium is reflected by a reversing entry:
Debit 77-1 Credit 92-1
– the insurance premium under the contract has been adjusted.
However, changes to the contract associated with a decrease in the amount insurance coverage and, as a result, a reduction in the amount of the insurance premium, can be made in the next reporting period. In such a situation, the methods for recording such a transaction depend on the state of settlements with the policyholder.
For example, the policyholder paid insurance premiums (contributions), and then the terms of the contract changed and the amount of the contribution decreased. In this case, the insurer returns part of the insurance premiums to the policyholder in accordance with the new terms of the contract.
In the accounting records of an insurance organization, the return of part of the insurance premium is reflected as follows:
Debit 22-5 Credit 50, 51 – part of the insurance premium was returned in accordance with the change in the terms of the contract.
Let us assume that the policyholder has not paid the insurance premium in full. Then an additional agreement was concluded to reduce the insurance premium payable under the contract by the amount of the insured's receivables. In such a situation, one of the following entries must be made in the insurance company’s accounting:
Debit 91-2 Credit 77-1 – written off accounts receivable the policyholder due to changes in the terms of the contract;
Debit 22-5 Credit 77-1 – the amount to be returned due to changes in the terms of the agreement has been accrued.
The chosen option for offsetting counterclaims for payment of the insurance premium by the policyholder and the return of part of the insurance premium by the insurance company in accordance with the changes made to the contract must be enshrined in the company's accounting policy.
Thus, for the credit of subaccount 77/1 “Settlements with policyholders”, the following is reflected in correspondence with cash accounts:
Excessively received insurance premiums (contributions);
Amounts of insurance premiums (contributions) received but not formalized in accordance with the established procedure, for example, when identifying the specific sender of the payment.
In the debit of subaccount 77/1, in correspondence with the credit of the cash account, the overpaid insurance premiums (contributions) returned by the policyholder and other insurance premiums (contributions) incorrectly received from them are reflected. When receiving funds as an advance payment under a general policy, insurance premiums are subject to accounting on account 92 in the amount and on the date of commencement of the organization's liability in accordance with insurance policies for individual lots of property covered by the general policy. If the general policy does not provide for the issuance of a policy for individual lots of property, then the funds received are recorded in the account. 92 at the time of admission.
When determining financial results for the reporting period, the credit balance of account 92 is written off to the resulting account 99 “Profits and losses”. And in accounting the following entry is made:
Debit 92 “Insurance premiums (contributions)”
Credit 99 “Profits and losses.”
Analytical accounting of the account. 92 must be maintained in the context of the types of insurance carried out by the insurance organization (to ensure completeness and accessibility of operational accounting information, analysis of the dynamics of the insurance portfolio, etc.).
In paragraph 2 of Art. 317 of the Civil Code of the Russian Federation states that “a monetary obligation may stipulate that it is payable in rubles in an amount equivalent to a certain amount in foreign currency or conditional monetary units».
Therefore, in some cases, in insurance contracts, the insured amount and insurance premium are established in US dollars (or other foreign currency) or conventional monetary units. It should be remembered here that the sum insured is the basis for calculation monetary obligations parties - the insurance premium and insurance payment and when determining them, the base must be the same, unless otherwise provided by the contract.
Insurance intermediaries. Participants in the insurance market are insurance intermediaries who play an active role in promoting insurance services and supporting insurance consumers at all stages of the conclusion and validity of insurance contracts.
Currently, the legal status of third parties acting in insurance legal relations as insurance representatives and intermediaries, called insurance agents and insurance brokers, is determined by Article 8 of the Law Russian Federation dated November 27, 1992 N 4015-1 “On the organization of insurance business in the Russian Federation” (as amended as of July 21, 2005).
The main activities of agents are related to the promotion and organization of sales of insurance services from insurers to consumers. Agency promotion of insurance services is characterized by a high level of costs. The use of direct sales of insurance services via telephone and the Internet significantly reduces the costs of promoting insurance services and allows the use of more financially attractive insurance conditions. Banks, communication institutions, supermarkets, travel agencies, car dealerships, etc. are widely involved in direct sales resources.
The main difference insurance agent from an insurance broker is that the powers of an insurance broker are broader than the powers of an insurance agent, since the insurance broker has the right to act as a representative both on behalf of the insurer and on behalf of the policyholder on the basis of their instructions. Insurance brokers act as intermediaries in the relationship between policyholders and insurers and vice versa, not on their behalf as insurance agents, but on their own behalf. Insurance agents are known to act only on behalf of the insurer.
At the same time, it should be noted that both individuals and legal entities can act as insurance brokers, which is similar to the subject composition of insurance agents. However, the legislator established and defined the status of an insurance broker only as an entrepreneur, which must be confirmed by fact state registration in the prescribed manner, whereas this is not required for insurance agents. The procedure and conditions for state registration of persons carrying out entrepreneurial activity, established by Federal Law dated 08.08.2001 N 129-FZ “On State Registration of Legal Entities” (as amended on 02.07.2005).
Insurance brokers are required to send a notice of intention to carry out insurance intermediary activities to the Department of Insurance Supervision. The following information is attached to the notice:
1) for individuals:
Full Name;
Passport details;
Legal address;
A notarized copy of the education document and work record book;
Regulations on the insurance broker;
2) for legal entities:
Full and abbreviated name of the organization;
Legal address;
A notarized copy of the state registration certificate;
Notarized copy of the charter;
Size Details authorized capital.
After the insurance supervisory authority has reviewed the submitted documents, the insurance broker is issued a certificate of inclusion in the register of insurance brokers.
The register of insurance brokers operating on the territory of the Russian Federation, which is maintained by the Department of Insurance Supervision, contains: registration number; broker name; legal address; number of the certificate of entry into the register; date of issue (revocation) of the certificate.
To reflect transactions with the participation of an intermediary, accounts 77-5 “Settlements for insurance premiums (contributions) with insurance agents, insurance brokers” and 77-7 “Settlements with insurance agents, insurance brokers for remuneration” are used.
The commission accrued to an insurance agent or broker is reflected in the accounting records by posting:
Credit 77/5 “Settlements with insurance agents and brokers.”
The amounts of commission actually paid to insurance agents and brokers are reflected in the accounting records by posting:
Debit 77/5 “Settlements for insurance premiums (contributions) with insurance agents and insurance brokers” Credit 50 “Cash” (51 “Current account”...)
Commission amounts accrued to insurance agents and brokers for concluding insurance contracts are reflected in the Journal of concluded insurance contracts (Table 3.1) and are deducted when calculating the basic insurance premium.
If the insurance agent is an individual, then when paying him commission amounts, income tax is withheld and deductions are made to state extra-budgetary funds. social funds. In this case, the following entries are made in accounting:
Debit 20 “Business expenses”
Credit 77/5 “Settlements for insurance premiums (contributions) with insurance agents and insurance brokers” commission accrued;
Debit 77/5 “Calculations for insurance premiums (contributions) with insurance agents and insurance brokers” Credit 68 “Calculations for taxes and fees”, subaccount “for income tax”, income tax is withheld from remuneration amounts in the generally established manner;
Debit 77/5 “Settlements for insurance premiums (contributions) with insurance agents and insurance brokers” Credit 69 “Settlements for social insurance and security”, subaccount “with the Pension Fund of the Russian Federation” a contribution of 1% to the Pension Fund of the Russian Federation is withheld;
Debit 77/5 “Settlements for insurance premiums (contributions) with insurance agents and insurance brokers” “Settlements with insurance agents and brokers” Credit 50 “Cash” (51 “Cash account”) issued from the cash desk (transferred from the current account) to the insurance agent
Debit 26 " General running costs»
Credit 69 “Calculations for social insurance and social security» Contributions to state off-budget social funds have been calculated in accordance with the current legislation of the Russian Federation.
Example. On March 1, 2004, a life insurance contract was concluded. The insurance period is 365 days. Sum insured – 126 thousand rubles, insurance premium – 120 thousand rubles. The rate of return is 5% per annum. The insurance agent's commission is 10 thousand rubles. Payment of insurance premiums in accordance with the insurance contract is made monthly in equal installments - 10 thousand rubles each. per month. The contract comes into force from the date of commencement of payment of the insurance premium. From this date, the insurer’s liability to the policyholder under the concluded contract also arises. On the same day, the policyholder made the first payment - 10 thousand rubles - to the insurance company's cash desk.
After accepting the contract for execution, the following accounting entries will be made:
Debit 77, subaccount 1 “Settlements for insurance premiums (contributions) with policyholders”, Credit 92, subaccount 1 “Insurance premiums (contributions) under insurance contracts (main)”, analytical account 1 “Life insurance” - 10 thousand rubles. – the accrual of the insurance premium (income due) is reflected;
Debit 50, subaccount 1 “Cash of the organization”, Credit 77, subaccount 1 “Settlements for insurance premiums (contributions) with policyholders” - 10 thousand rubles. – the receipt of the insurance premium is reflected;
Debit 26 “General business expenses”, Credit 77, subaccount 7 “Settlements with insurance agents, insurance brokers for remuneration” - 10 thousand rubles. – reflects the amount of accrued remuneration due to the insurance agent;
Debit 77, subaccount 7 “Settlements with insurance agents, insurance brokers for remuneration”, Credit 50, subaccount 1 “Cash of the organization” - 10 thousand rubles. – reflects the payment of remuneration to the insurance agent.
Insurance payments. According to Art. 9 of the Law of the Russian Federation “On the Organization of Insurance Business”, an insured event is an event that has occurred, provided for by an insurance contract (in case of voluntary insurance) or by law (in case of compulsory insurance), upon the occurrence of which the insurer becomes obligated to make an insurance payment to the policyholder, the insured person, the beneficiary or other third parties. Moreover, the event considered as insurance risk, must have. signs of the likelihood and randomness of its occurrence. In case of an insured event involving property insurance payment produced in the form insurance compensation, in case of an insured event involving the identity of the policyholder or a third party - in the form of insurance coverage.
Insurance payments under insurance contracts are one of the main types of expenses of an insurance organization. Balance sheet account 22 “Payments under insurance, co-insurance and reinsurance contracts” is used to record insurance payments.
Subaccounts can be opened to account 22 “Payments under insurance, coinsurance and reinsurance agreements”:
22-1 “Insurance payments under insurance contracts (main)”;
22-2 “Insurance payments under co-insurance agreements”;
22-3 “Insurance payments under contracts accepted for reinsurance”;
22-4 “Share of reinsurers in insurance payments”;
22-5 “Return of insurance premiums (contributions) and redemption amounts”, etc.
In subaccount 22-1 “Insurance payments under insurance contracts” the insurance organization reflects insurance compensations or insurance amounts paid to policyholders (beneficiaries) in the reporting period in connection with the occurrence of insured event, as well as payment of the insured’s expenses incurred in order to reduce losses in cases where they were necessary or were incurred by him to comply with the instructions of the insurer.
The debit of subaccount 22-1 “Insurance payments under insurance contracts (main)” reflects:
The amounts of insurance compensation paid or insurance amounts under insurance contracts in connection with the occurrence of an insured event - in correspondence with the credit of cash accounting accounts or the credit of account 77 “Settlements for insurance, co-insurance and reinsurance” (sub-account “Settlements for insurance premiums (contributions) with insurance companies agents, insurance brokers"), if the insurance agent, insurance broker sent the amounts of insurance premiums (contributions) to pay insurance compensation or insurance amounts under insurance contracts in connection with the occurrence of an insured event;
The amounts of reimbursed expenses of the insured made in order to reduce losses in cases where they were necessary or were incurred by him to carry out the instructions of the insurer - in correspondence with cash accounts;
Amounts withheld from insurance compensation or insurance amounts to pay off the policyholder's debt to pay the next insurance premium - in correspondence with the credit of account 77 "Settlements for insurance, co-insurance and reinsurance (sub-account "Settlements for insurance premiums (contributions) with policyholders");
The amounts of accrued taxes from insurance payments in cases established by law are in correspondence with the credit of account 68 “Calculations for taxes and fees.”
At the end of the reporting period, the debit balance of subaccount 22-1 “Insurance payments under insurance contracts (main)” is written off to the debit of account 99 “Profits and losses”.
In a similar manner, records are kept in subaccount 22-2 “Insurance payments under co-insurance agreements.” In this case, each insurer - party to the co-insurance agreement reflects in subaccount 22-2 “Insurance payments under co-insurance agreements” the insurance compensation paid under the co-insurance agreement or the insurance amounts in the part attributable to its share in the co-insurance agreement.
In subaccount 22-3 “Insurance payments under contracts accepted for reinsurance,” insurance organizations acting as reinsurers in the reinsurance agreement reflect the amounts due for compensation to the reinsurer for losses paid by it in the reporting period.
The debit of subaccount 22-3 “Insurance payments under contracts accepted for reinsurance” in correspondence with the credit of account 77 “Settlements for insurance, co-insurance and reinsurance” (subaccount “Settlements for contracts accepted for reinsurance”) accrues the amount due for compensation to the reinsurer for losses paid by him in the reporting period in the share attributable to the reinsurer in accordance with the reinsurance agreement.
At the end of the reporting period, the debit balance of subaccount 22-3 “Insurance payments under contracts accepted for reinsurance” is written off to the debit of account 99 “Profits and losses”.
In subaccount 22-4 “Share of reinsurers in insurance payments,” insurance organizations acting as reinsurers in the reinsurance agreement reflect, in accordance with the reinsurance agreement, the share of reinsurers in insurance payments made in the reporting period.
Under the credit of subaccount 22-4 “Share of reinsurers in insurance payments” in correspondence with the debit of account 77 “Settlements for insurance, co-insurance and reinsurance” (subaccount “Settlements under contracts transferred to reinsurance”), the amount of the reinsurer’s share in insurance payments of the reporting period.
At the end of the reporting period, the credit balance of subaccount 22-4 “Share of reinsurers in insurance payments” is written off to the credit of account 99 “Profits and losses”.
Subaccount 22-5 “Return of insurance premiums (contributions) and redemption amounts” reflects insurance premiums (contributions) returned to policyholders and reinsurers, as well as paid redemption amounts in cases of early termination or change in the terms (reduction of the insured amount, etc.) of the contract insurance, coinsurance and reinsurance.
The debit of subaccount 22-5 “Return of insurance premiums (contributions) and redemption amounts” reflects:
insurance premiums (contributions) returned to policyholders in cases of early termination or change of conditions (reduction of the sum insured, etc.) of an insurance contract, coinsurance related to a type of insurance other than life insurance - in correspondence with cash accounts;
redemption amounts under life insurance contracts paid to policyholders upon early termination or change of conditions (reduction of the insured amount, etc.) of life insurance contracts, in cases provided for by the terms of these contracts - in correspondence with cash accounts;
insurance premiums (contributions) subject to return to the reinsurer in cases of early termination of the insurance contract (main) or reinsurance contract - in correspondence with account 77 “Settlements for insurance, co-insurance and reinsurance” (sub-account “Settlements for contracts accepted for reinsurance”).
On the credit of subaccount 22-5 “Return of insurance premiums (contributions) and redemption amounts” the following is reflected:
insurance premiums (contributions) due for return by reinsurers in cases of early termination of an insurance contract (main) or reinsurance contract - in correspondence with account 77 “Settlements for insurance, co-insurance and reinsurance” (sub-account “Settlements for contracts transferred to reinsurance”) .
At the end of the reporting period, the balance of subaccount 22-5 “Return of insurance premiums (contributions) and redemption amounts” is written off to account 99 “Profits and losses”.
Currently, accountants have to deal with the difficult task of maintaining tax and accounting records at the same time. The accounting requirements put forward by the Ministry of Finance of the Russian Federation and the tax authorities often do not coincide and sometimes contradict each other. Some aspects are not regulated by regulatory documents, or their definition is not amenable to unambiguous interpretation.
Officials, when deciding to keep records using one method or another, do not always remember the need to reflect the chosen method in the organization’s accounting policies or other internal documents, and also sometimes forget to follow the provisions of the adopted method in their actions. accounting policy organizations.
In the internal documents of the organization, it is advisable to define all the primary documents on the basis of which the expense in the form of the payment of insurance compensation will be accepted in tax or accounting records.
Accounting for insurance payments under contracts accepted for reinsurance differs from accounting for payments under insurance contracts. The debit of subaccount 22-3 “Insurance payments under contracts accepted for reinsurance” accrues the amount due for compensation to the reinsurer for losses paid by him in the reporting period in the share attributable to the reinsurer in accordance with the reinsurance agreement.
For tax accounting purposes, in particular for calculating the tax base for corporate income tax, expenses in the form of insurance payments under insurance contracts and contracts accepted for reinsurance are included in expenses on the date the taxpayer has an obligation to pay insurance compensation in favor of the policyholder or the insured persons (in case of liability insurance - the beneficiary) for the actual insured event, expressed in an absolute monetary amount.
Thus, for accounting purposes, expenses in the form of insurance compensation under insurance contracts are recognized at the time of their actual payment. The moment of reflection of the payment in the accounting accounts can be confirmed by a bank statement on the transfer of funds from the current account, an expenditure cash order, as well as other primary accounting documents confirming the fact of repayment of the obligation to the policyholder (beneficiary).
In tax accounting, unlike accounting, expenses in the form of insurance compensation payments under insurance contracts and contracts accepted for reinsurance are recognized using the accrual method. The date of recognition of the expense may be the date of signing a bilateral act on the occurrence of an insured event, signed with a medical institution or other person providing services under the subject of the insurance contract. The expense can be confirmed, for example, by an insurance act containing the consent (acceptance) of the insurance organization to pay the insurance compensation, or by other appropriately executed documents indicating that the organization has an obligation to pay. A detailed list of primary documents on the basis of which payments are recognized as expenses for the purpose of determining the tax base for income tax is recommended to be included in the insurer’s accounting policy for tax accounting purposes.
In some insurance organizations, accounting for insurance payments under insurance contracts is carried out, just like in tax accounting, on an accrual basis, which, on the one hand, eliminates the problems associated with the differences between the two types of accounting, but, on the other hand, does not correspond the procedure for reflecting insurance payments established by the Ministry of Finance of Russia.
From the book Accounting Theory: Lecture Notes author Daraeva Yulia Anatolevna4. Accounting for calculations for social insurance and security To create special funds, appropriate deductions are made for social needs, which are included in the costs of production or circulation. Benefits for temporary disability, sanatorium-resort
From the book Theory of Accounting author Daraeva Yulia Anatolevna3. Accounting for trust management operations. Accounting transferred to trust management property An enterprise can transfer its property for a certain period of time for management to another enterprise (person), which will manage this property
From the book Accounting and Taxation of Employee Insurance Expenses author Nikanorov P S17. Accounting for calculations for social insurance and security To create special funds, appropriate deductions are made for social needs, which are included in the costs of production or circulation. Benefits for temporary disability, sanatorium-resort
From the book How to convert Russian reporting to an international standard author Sosnauskiene Olga Ivanovna19. Accounting cash transactions Cash transactions are operations associated with the receipt, storage and expenditure of various funds received at the organization's cash desk from the servicing bank. Primary documentation: 1) cash receipt order; 2) cash expenditure order
From the book Accounting author Melnikov IlyaArticle 3.1. Subjects and participants in relations on non-state pension provision, compulsory pension insurance and professional pension insurance (introduced by Federal Law No. 14-FZ of January 10, 2003) by subjects of non-state relations
From the book Accounting in Insurance author Krasova Olga Sergeevna2.3. Accounting for individual transactions Rules for the formation in accounting of information about the income and expenses of the organization, composition and content individual species income and expenses are determined by the accounting provisions “Income of the organization” PBU 9/99 and “Expenses
From the book Accounting in Trade author Sosnauskiene Olga IvanovnaACCOUNTING FOR CASH OPERATIONS IN FOREIGN CURRENCY AND OPERATIONS ON A CURRENCY ACCOUNT To account for transactions in foreign currency, a special cash desk will be created, and an agreement on full individual financial responsibility will be concluded with the currency cashier. Cash registers must be provided with all instructions,
From the book 1C: Enterprise in Questions and Answers author Arsentieva Alexandra EvgenievnaChapter 5. Accounting for mandatory transactions
From the book Accounting in Agriculture author Bychkova Svetlana Mikhailovna4.3. Accounting for banking transactions A bank is credit organisation, which has the right to carry out comprehensive (in aggregate) banking operations. the federal law dated December 2, 1990 No. 395-1 “On banks and banking» refers to banking operations: 1) attracting
From the book Financial Accounting author Kartashova Irina8. Accounting for cash transactions To generate reports on cash transactions, there is a “Cash Book” report, which is generated on the basis of cash documents. The cash register report is intended to identify cash balances in the cash register and to monitor cash
From the book Theory of Accounting. Cheat sheets author Olshevskaya Natalya9.6. Accounting for payments for taxes and fees, social insurance and security Agricultural enterprises, being subjects of the Russian Federation, are subject to all Russian legislative acts. Taxation is no exception.
From the book Management Accounting. Cheat sheets author Zaritsky Alexander Evgenievich2.1. Accounting for cash transactions 2.1.1. What regulatory documents regulate the procedure for conducting cash transactions at enterprises of the Russian Federation? The procedure for conducting cash transactions in the Russian Federation, approved by the decision of the board of directors of the Central
From the book ABC of Accounting author Vinogradov Alexey Yurievich106. Accounting for cash transactions In accordance with the rules established by current legislation, all enterprises, regardless of their form of ownership, must keep their funds in a bank institution. Cash received by the cash desk is spent only on
From the author's book115. Accounting for VAT transactions To reflect business transactions related to VAT in accounting, active account 19 “Value added tax on acquired assets” and passive account 68 “Calculations for taxes and fees” are used. Account 19 has the following
From the author's book83. Accounting for cash transactions In accordance with the rules established by current legislation, all enterprises, regardless of their form of ownership, must keep their funds in a bank institution. Cash received by the cash desk is spent only on
From the author's book5.5. Accounting for insurance contributions for social insurance and security The legislation of the Russian Federation provides for deductions to the Social Insurance Fund of the Russian Federation (FSS RF) in certain percentages of the accrued wages of employees of the enterprise. For this purpose the account is used
Organizations offering insurance services are required to maintain accounting records. Their activities are controlled by the insurance market department that exists under the Central Bank.
Primary documents
Primary documentation is the papers on the basis of which accounting is carried out. Primary information for an insurance organization:
- Founding papers: charter, license.
- Insurance contracts.
- Papers confirming the occurrence of the event (application, insurance certificate).
- Papers confirming coverage of losses.
- Tax accounting registers.
The insurance company needs to approve the document flow schedule and document forms that are necessary for accounting needs.
Accounting for payments under basic agreements with policyholders
The organization makes insurance payments when insured events occur. They may relate to various areas:
- Property (payments are made in cases of theft, flooding and other damage).
- Medicine (payments in case of illness).
- Auto (payments in case of car theft).
Insurance payments are formed from the totality of all proceeds from people who have entered into an insurance agreement with the organization. Payments are recorded on account 22. Information about them is collected in registers. Analytical accounting is carried out in the context of agreement forms and policyholders. Information is recorded in accounting on the date of occurrence of insurance rights.
Accounting for bonuses
Insurance premiums are payments made by a person to an organization. The insurance agreement comes into force either from the date specified in it or from the date of payment of the first premium.
Compensation in the event of an insurance event is paid only when the person has no arrears on premiums. All amounts for the past period must be paid.
The compensation paid to the insured may be counted towards the following insurance premiums.
Let's look at an example. The insured person was awarded compensation in the amount of 50,000 rubles. Additional expenses associated with the insured event were also confirmed. The person decided to use half of this amount towards future insurance payments. In this case, these postings are used:
- DT22/1 KT51. Payment of insurance compensation.
- DT22/1 KT51. Payment of additional expenses.
- DT22/1 KT77/1. Crediting part of the indemnity amount against the following insurance premiums.
The legality of all payments is confirmed by the primary source.
Accounting for reinsurance
Reinsurance is the transfer of obligations to protect against risks. It is assumed that these obligations are transferred from one organization to another. That is, a person enters into an agreement with one organization. She will be considered the primary insured. It is she who is responsible to clients. She also accepts various insurance claims.
If reinsurance is carried out, these transactions become relevant:
- DT92/4 KT77/4. Premium aimed at reinsurance.
- DT77/4 KT91/1. Money received from the reinsurer.
- DT77/4 KT77/6. Money deposited under agreements submitted to reinsurance.
The reinsurance agreement is a separate contract. The reinsurer makes payments only in the amounts established by the contract. Amounts above the limit are paid by the primary insurer.
Accounting for payments under coinsurance agreements
A person may enter into insurance agreements with several organizations. In this case, the companies will be jointly and severally liable to the person in the event of an insured event. That is, each organization contributes a certain share. There are 2 options for drawing up an agreement:
- The person enters into separate agreements with each company. Calculations are carried out by each organization separately.
- All operations are carried out by one organization, which acts on behalf of others.
If agreements are concluded with each organization separately, these postings are used:
- DT77/1 KT92/1. Calculation of insurance premium.
- DT51 KT77/1. Payment of the premium.
- DT22/1 KT77/1. Calculation of payment upon the occurrence of an insured event.
- DT77/1 KT51. Transfer of payment.
If settlements are carried out by one organization, accounting is carried out by each insurance company. Accounting reflects amounts proportional to the organization's share.
Accounting for liability insurance
Liability insurance involves compensation for damage caused by the insurer to a third party. For example, a person received insurance in case of apartment flooding. And then he flooded his neighbor's apartment. In this case, the insurance company compensates for the damage caused to this neighbor. Let's look at other common cases of liability insurance:
- Damage caused to someone else's vehicle during its operation.
- Damage caused to the environment or people due to potentially hazardous activities.
- Damage caused to third parties in connection with the performance of legal or medical activities.
Let's look at the entries made for liability insurance (example):
- DT22/1 KT51. Payment of damages to a person injured in a car accident.
- DT91/2 KT22/1. The payment is included in the spending structure.
- DT50 KT91/1. Receipt of money from a person found guilty of an accident.
FOR YOUR INFORMATION! You can insure business risks. In this case, the insurance agreement ends early upon termination of business activity.
Accounting for property and life insurance
A person can insure his property. In this case, he will receive payments in case of damage or theft of property. Property insurance can be either voluntary or mandatory. The second is relevant when leasing. These wires are used:
- DT77/1 KT92/1. Accrued bonuses.
- DT50, 51 KT77/1. Insurance proceeds.
Typically, life and property insurance on account 91 are accounted for separately.
Features of VHI accounting
VHI is one of the types of personal insurance. As a rule, it is included in the “social package” provided by the employer. Contributions for voluntary health insurance are included in expenses if there are circumstances specified in subparagraph 16 of article 255 of the Tax Code of the Russian Federation. Consider these circumstances:
- The VHI agreement is signed for a period of more than a year.
- The insurance company has a license to conduct insurance activities.
- Costs are fixed at no more than 6% of total labor costs.
In accounting, expenses for voluntary health insurance relate to the period in which they arose. Insurance payments are recorded on the DT of expense accounts (for example, account 20, 26, 44). The company may make insurance payments for persons with whom labor relations have not been formalized. Related expenses will be recorded on DT 91. A subaccount 02 will be opened for it.
Features of creating insurance reserves
The formation of insurance reserves is an event considered mandatory for an insurance company. The mandatory creation of such reserves is stipulated in Article 26 of Federal Law No. 4015-1 “On the Insurance Business” of November 27, 1992. The sequence of formation of reserves is specified in the order of the Ministry of Finance No. 51 n dated June 11, 2002.
Let's consider the sequence of formation of reserves:
- Establishment the desired type reserve. Orders of the Ministry of Finance 32n and 51n will help with this. You also need to focus on the local regulations of the company.
- Establishing a method for determining the reserve.
- Determination of the reserve for each insurance agreement.
The reserve is needed to ensure that the organization always has the amount of funds that is needed in the event of an insured event.
In insurance organizations, the manager is responsible for organizing accounting and compliance with laws when carrying out business operations.
Depending on the volume of accounting work, the manager can: 1. establish an accounting service as a structural unit headed by a chief accountant; 2. add an accountant position to the staff; 3. transfer on a contractual basis the maintenance of accounting to a centralized accounting department, a specialized organization or a specialist accountant; 4. maintain accounting records personally.
Chief Accountant(financial director, accountant) of an insurance organization, who heads the accounting service, acts in accordance with the Law “On Accounting” and the Regulations on Accounting and Financial Reporting in the Russian Federation. He reports to the head of the insurance organization and is responsible for the formation of accounting policies, accounting, and timely submission of complete and reliable financial statements.
The chief accountant ensures compliance of ongoing business operations with current legislation, control over the movement of property and the fulfillment of obligations. In case of disagreements between the manager and the chief accountant regarding the implementation of certain transactions, documents on them can be accepted for execution with a written order from the manager, who bears full responsibility for the consequences of such transactions. In accordance with Article 18 of the Law “On Accounting”, heads of organizations and other persons responsible for organizing and maintaining accounting records, in case of evasion of accounting in accordance with the procedure established by law and regulatory documents, distortion of financial statements and failure to comply with deadlines for their submission and publications are subject to administrative or criminal liability in accordance with the legislation of the Russian Federation.
The appointment and dismissal of the chief accountant is made by the manager.
In insurance organizations whose activities, in accordance with established criteria, are subject to mandatory audit, it is recommended that a specialist be appointed to the appropriate position if he has a qualification certificate of a professional accountant or an auditor certificate.
The acceptance and delivery of cases upon the appointment and dismissal of the chief accountant is formalized by an act of verification of the state of accounting and reporting in the insurance organization.
The chief accountant cannot be assigned responsibilities related to direct financial responsibility for material assets and funds; he cannot himself receive funds and inventory items for the insurance organization by checks. An exception may be made for small insurance organizations: by agreement with the bank institution, the chief accountant performs the function of a cashier.
When changing an accountant, a bilateral acceptance certificate must be drawn up, which is signed by the chief accountants of the insurance organization - the dismissed and the appointed.
During the absence of the chief accountant, his rights and responsibilities are transferred to the deputy or other official, as announced by order of the insurance organization.
The chief accountant signs monetary and settlement documents, financial and credit obligations. Financial and credit obligations include documents formalizing financial investments organizations, loan agreements, credit agreements and agreements concluded on commodity and commercial credit. The specified documents without the signature of the chief accountant are considered invalid.
The main task of the accounting department of an insurance organization is to contribute to the achievement of positive results economic activity. To do this, it is necessary to ensure: 1. the formation of complete and reliable information about the activities of the organization and its property status, necessary for internal users of financial statements - managers, founders, participants and owners, as well as external users - investors, creditors and other users of financial statements; 2. providing users with information to monitor compliance with legislation when carrying out business transactions and their feasibility, the availability and movement of property and obligations, the use of material, labor and financial resources in accordance with approved norms, standards and estimates; 3. preventing negative results of economic activity and identifying intra-economic reserves to ensure its financial stability. Main functions performed by accounting; 4. accounting of material and technical assets (fixed assets, materials); 5. accounting for wage calculations (accrual wages, deductions from wages, single social tax and insurance premiums in Pension Fund and foundation social insurance); 6. accounting of insurance operations (receipt of insurance premiums for main insurance, coinsurance and reinsurance, payment of insurance compensation, formation of insurance reserves, placement of insurance reserves); 7. accounting for business expenses, other income and expenses; 8. accounting of financial activities (profits, funds and reserves); 9 new means of materials) -ness and is carried out by licensing authorities. ru in the field of insurance activities. in and zako. accounting of monetary transactions (cash in hand, in settlement, currency and other bank accounts, settlements with suppliers, other creditors, settlements with the budget, settlements for deductions and payments); 10. Preparation of financial statements.
The accounting system is based on the following principles generally accepted in world practice: complete documentation; inventory; summarizing information on accounts; double entry; preparation of balance sheets and reporting.
An insurance organization, when organizing accounting, can independently establish: 1. accounting policies; 2. organizational form of accounting work (based on specific business conditions); 3. form and methods of accounting, technology for processing accounting information, based on the forms and methods existing in the Russian Federation, subject to general methodological principles; 4. system of internal production (management) accounting, reporting and control.
An insurance organization can allocate its farms, branches, representative offices, and departments to a separate balance sheet.
ULYANOVSK STATE TECHNICAL UNIVERSITY
GRADUATE WORK
Topic: Accounting in insurance organizations using the example of Rosgosstrakh-Povolzhye LLC
Student Klyueva Natalya Vladimirovna
(Full name) (signature)
Supervisor Sazhina Svetlana Semenovna
(Full name) (signature)
Reviewer Kulishova Olga Petrovna
(Full name) (signature)
Allow SAC protection
Head Department
______________________________
"____" _____________ 2005
Ulyanovsk 2005
Introduction……………………………………………………..………………………...3
Chapter 1 Theoretical basis organization of accounting of insurance companies…………………………………………………………………………………...6
1.1 Legislative basis of insurance activities……………………………...6
1.2 Economic essence insurance………………………………….……...10
1.3 Features of the chart of accounts for accounting of insurance organizations......12
1.4 Accounting form……………………………………………………..16
Chapter 2 Organization of accounting using the example of Rosgosstrakh-Povolzhye LLC………………………………………………………………………………..….…….……18
2.1 Economic characteristics insurance company and its results
financial activities……………………………………………………………….…………18
2.2 Principles of accounting organization……………………………….21
2.3 Accounting for funds and settlements with accountable persons……….…………24
2.4 Accounting for insurance transactions………………………………………………………29
2.5 Payroll accounting………………………………………………………………..32
2.6 Accounting for settlements with different debtors and creditors………………………….37
2.7 The procedure for recording expenses (except for insurance payments)……………38
2.8 Accounting for insurance reserves………………………………………………………...40
Chapter 3 Accounting statements and their audit in an insurance company……………..44
Conclusion……………………………………………………………...………………………..57
List of sources used……………………………………………………………60
Applications…………………………………………………………………………………...62
Introduction
Legally, no organization, regardless of departmental affiliation and forms of ownership, can function without maintaining accounting records, since only accounting data provides complete information about property and financial condition organizations; synthetic and analytical information about the state of material, labor and monetary resources, costs and production efficiency, etc., which allows you to manage economic activities and monitor the implementation of profit plans, and develop long-term production development plans. Thus, accounting is integral part managerial and information system organizations.
Accounting information serves as the basis for making management and financial decisions both within the organization and externally. At the same time, it ensures the implementation of critical functions such as information, planning, control, security and analysis.
The main objectives of accounting are:
a) ensuring control over the availability and movement of property, the use of material, labor and financial resources in accordance with established norms, standards and estimates;
b) formation of complete and reliable information about business processes and financial results activities of the organization necessary for operational management and management; identification of internal production reserves, their mobilization and effective use, timely prevention of negative phenomena in economic and financial activities.
These tasks are solved when maintaining accounting records by using in various ways and techniques, the main ones of which are: documentation, inventory, accounts, balance sheet, reporting.
The object of the study was an insurance company called the Insurance Department in the city of Barysh, Rosgosstrakh-Povolzhye LLC. Rosgosstrakh is the largest insurance company in Russia, which is capable of exerting a significant influence on the formation of the insurance market in the country. The Russian state insurance company has many years of successful experience. Formed in February 1992, it is the legal successor of Gosstrakh of the RSFSR, which was created in 1921. Development Russian market insurance services were largely determined by the activities of Gosstrakh, and then Rosgosstrakh.
In modern market conditions, insurance is a strategic sector of the economy. The main purpose of insurance is to protect the property interests of individuals and legal entities in the event of insured events. The means of achieving this goal is the advance creation of insurance funds (reserves) from insurance premiums of policyholders, from which insurance payments are made to those clients whose property interests are damaged due to the occurrence of an insured event. And insurance activity consists of the formation of insurance funds (reserves) from the contributions of policyholders and the implementation of insurance payments upon the occurrence of insured events. The purpose of the work is to study the organization of accounting using the example of an insurance company and outline ways to improve it. Based on the set goal, it is necessary to solve the following tasks:
1) achieving interconnected control of performers;
2) ensuring effective management of the insurance company;
3) formation of complete and reliable information about the economic activities of the enterprise and its results;
4) ensuring control over the remuneration of workers of the insurance company;
5) obtaining the necessary data for drawing up financial statements.
Insurance accounting has its own specifics and differs from public accounting. In an insurance organization, the main aspects of accounting are: accounting for direct insurance operations (accounting for insurance premiums and insurance payments), forming and accounting for insurance reserves, accounting for income from insurance activities, and accounting for business expenses. Important are the issues of determining the financial results of the activities of insurance organizations and the formation of accounting and financial statements of the insurance organization.
To stimulate the development of the insurance market, it is necessary to carry out an active structural policy, one of the main points of which is to optimize the proportions of the ratio of voluntary and compulsory forms of insurance. It is necessary to strengthen control over insurance companies by conducting audits, take measures to coordinate insurance activities that will prevent, prevent and avoid unfair fulfillment of accepted insurance obligations, which will help increase the level of public confidence in insurance and development voluntary insurance.
Chapter 1 Theoretical foundations of accounting organization
accounting of insurance companies
1.1 Legislative framework for insurance activities
The regulation of relations in the field of insurance between insurance companies and citizens, enterprises, organizations, the relations of insurance organizations among themselves, the establishment of the basic principles of state regulation of insurance activities are carried out in accordance with the Law of the Russian Federation “On Insurance” No. 4015-1, adopted on November 27, 1992.
Insurance is a relationship to protect the property interests of individuals and legal entities upon the occurrence of certain events (insured events) at the expense of funds generated from insurance premiums paid by these individuals. Insurance can be voluntary, acting on the basis of an agreement between the policyholder and the insurer, and mandatory, operating by force of law.
Main functions of insurance:
Formation of a specialized insurance fund cash as payment for risks that insurance companies assume responsibility for. This fund can be formed either compulsorily or voluntarily. The state, based on the economic and social situation, regulates the development of the insurance business in the country. This function is implemented in the spare and reserve funds, providing stable insurance, payment guarantee and compensation. This function solves the problem of investing temporarily free funds in banking and other commercial structures, investing money in real estate for the purchase of securities. With the development of the insurance market, the mechanism for using temporarily free funds will invariably improve and expand.
Compensation for damage and personal financial support for citizens. Only individuals and legal entities that are participants in the formation of the insurance fund have the right to compensation for damage to property. The procedure for compensation for damage is determined by insurance companies based on the terms of the insurance contract and is regulated by the state, i.e. must have a license to carry out insurance activities.
Prevention of an insured event and minimization of damage. It offers a wide range of measures, including the formation of measures to prevent or reduce negative consequences accidents and natural disasters. This also includes the legal impact on the policyholder, enshrined in the terms of the insurance contract and focused on careful treatment of the insured property.
The objects of insurance may be property interests that do not contradict the legislation of the Russian Federation and are related to:
1) with the life, health, and ability to work of the policyholder or the insured person;
2) with the possession, use, disposal of property;
3) with compensation by the insured for damage caused to the person or property of an individual, as well as damage to a legal entity.
Insurance relations involve policyholders, insurers, insurance agents and insurance brokers.
An insurance contract is concluded in writing between the policyholder and the insurer, by virtue of which the insurer undertakes, in the event of an insured event, to make an insurance payment to the policyholder or another person in whose favor the insurance contract is concluded, and the policyholder undertakes to pay insurance premiums in deadlines. The contract comes into force from the moment the policyholder pays the first installment. The insurer transfers to the policyholder an insurance certificate (policy) with the insurance rules attached, which certifies the fact of concluding an insurance contract.
The insurance certificate must contain:
Title of the document;
Name, legal address and bank details of the insurer;
Last name, first name, patronymic or name of the policyholder and his address;
Indication of the insurance object;
Sum insured;
Indication of the insurance risk;
The amount of the insurance premium, the timing and procedure for its payment;
Contract time;
Procedure for changing and terminating the contract;
Other conditions by agreement of the parties;
Signatures of the parties.
Insurance payment is made by the insurer in accordance with the insurance contract based on the application of the policyholder and the insurance act. The insurance act is drawn up by the insurer. If necessary, the insurer requests information related to the insured event from law enforcement agencies and other organizations that have information about the circumstances of the insured event. The insurer has the right to independently determine the causes and circumstances of the insured event. Enterprises and organizations are required to provide insurers with information related to the insured event upon their request.
The grounds for the insurer’s refusal to make an insurance payment are: the commission by the person in whose favor the insurance contract was concluded of intentional actions or crimes related to the occurrence of the insured event; notification to the insurer in advance false information and other cases provided for by law.
The insurance contract is terminated in the following cases:
Expiration of the insurance period;
Fulfillment by the insurer of its obligations to the policyholder under the contract in full;
Failure of the policyholder to pay insurance premiums on time.
The insurance contract may be terminated early at the request of the policyholder or the insurer, if this is provided for by the terms of the insurance contract, as well as by agreement of the parties. In case of early termination of the insurance contract, the insurer returns insurance premiums for the expired term of the contract minus the expenses incurred.
The basis for the financial stability of insurers is the presence of: paid-up authorized capital, insurance reserves, their insurance premiums, funds formed from profits.
One of the first accounting standards is PBU 1/98 “Accounting Policies of Organizations”. Under accounting policy For accounting purposes, an organization means its chosen set of accounting methods - primary observation, cost measurement, current grouping and final generalization of the facts of economic activity. Even before the formation of an accounting policy, it is necessary to know the volume of accounting information and its purpose for the purposes of reporting, taxation, management and control over the economic activities of the organization and the timing of its formation. The accounting policy of the organization is formed by the chief accountant and approved by the head of the organization (Appendix A).
To carry out insurance activities, it is licensed. Licensed insurance activities mean the activities of insurance organizations associated with the formation of special cash funds (insurance reserves) necessary for upcoming payments.
A license to conduct insurance activities is a document certifying the right of its owner to conduct insurance activities on the territory of the Russian Federation, subject to the conditions and requirements specified when issuing the license. Licenses are issued to conduct voluntary and compulsory insurance in accordance with the classification of activities.
To obtain a license to conduct insurance activities, the insurer must have paid-up authorized capital in accordance with current legislation. The insurer is responsible for the accuracy of the information specified in the documents submitted for licensing.
1.2 Economic essence of insurance
In modern production, various resources are used: material, human, financial, information, etc. Each of them is subject to a certain risk. Materials can be stolen, burn in a fire, or deteriorate during storage; a person at work can get injured or get sick; money may be stolen; information may disappear, etc. These and other risks are inevitably present in any production process. And, if we consider the insurance risk as an expected event that can happen to a particular object, then the main purpose of insurance is to ensure insurance protection of the property interests of individuals and legal entities. The need for insurance protection can be explained by humanity’s reaction to possible dangers of natural, man-made, economic, social, environmental and other origins. Insurance protection is caused by the objective need of individuals and legal entities to preserve their property, their identity, to ensure similar interests of third parties in the face of the threat of possible danger to these interests. Thus, insurance protection is the conscious need of individuals and legal entities to create special insurance funds for the restoration of property, health, ability to work and personal income, both by the participants in the creation of these funds and by third parties.
Insurance protection is provided by the creation of insurance funds using self-insurance and direct insurance methods.
Self-insurance means that individuals and legal entities themselves put aside products or part of their income in reserve in case of an unforeseen danger that could damage their interests. Self-insurance funds are created at the level of family, enterprise, city, industry, region, and state.
Direct insurance is insurance from professional insurers. Direct insurance means that individuals and businesses are willing, or legally obligated, to pay a predetermined amount of money to an insurance organization. The insurance organization uses this money to create an insurance fund to protect the interests of these individuals. As a rule, with direct insurance, individuals and legal entities purchase a guarantee of insurance protection from an insurance company. And when an insured event occurs that causes damage to the insured persons, the insurance organization compensates the client for the damage from the insurance funds. Thus, the insurance payment from the reserves of the insurance organization materializes insurance protection, the client receives funds to restore and eliminate the consequences of the insured event.
It should be noted that insurance gives people a sense of peace of mind. A person is firmly convinced that in the event of an event that could disrupt the financial well-being of his family or his business, sufficient financial compensation will be obtained with the help of insurance. Insurance does not prevent events, but allows compensation for their unfavorable consequences. economic consequences. The widespread use of industrial insurance gives people confidence that in the event of various accidents, their heirs will be provided for, and material and property losses will be restored. Participation in insurance requires people to have property wealth, culture, and education.
Thus, the economic essence of insurance is as follows:
Insurance is an economic relationship of purchase and sale of insurance protection services, called an insurance product;
Economic relations arise between the buyer (insurer) and the seller (insurer) of the service;
The policyholder pays the insurer a specially calculated and agreed amount of money (insurance premium, insurance premium), the insurer uses these contributions to form insurance reserves according to the relevant rules;
From the insurance reserves, those clients whose property interests were damaged due to the occurrence of an insured event will receive payments corresponding to the insurance contract;
Temporarily available funds from insurance reserves are invested in government securities, shares, real estate, etc., which brings investment income to the insurance organization;
Other economic entities – intermediaries (agents, brokers) – also participate in insurance relations.
In a market economy, insurance acts, on the one hand, as a means of protecting business and people’s well-being, and on the other hand, as a commercial activity that generates profit.
1.3 Features of the chart of accounts for insurance accounting
organizations
When maintaining accounting records, the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, must be guided by the following documents:
Regulations on the composition of costs for the production and sale of products (works, services), included in the cost of production, and on the procedure for generating financial results taken into account when taxing profits;
Regulations on the specifics of the definition tax base for payment of income tax by insurers;
Regulations on accounting and reporting;
Chart of accounts for financial and economic activities of insurance organizations and Instructions for its use.
To manage the business process and exercise control, it is necessary to have indicators of the movement of funds from the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC. Obtaining information about the movement of funds is carried out using accounting accounts.
An account is a way of grouping and current reflection of changes (increases or decreases) occurring in an organization's funds. A monetary meter is used to record transactions in accounts. Grouping accounts according to various criteria is used to guide which accounting objects to reflect on the accounts. The classification of accounts by economic content answers the question of what is taken into account for each homogeneous group of accounts. It is based on the classification of accounting objects and contributes to the correct organization of daily accounting at the enterprise.
A chart of accounts is a list of accounts opened in the general ledger of an enterprise.
Basic requirements for drawing up a chart of accounts:
The chart of accounts should be based on a flexible classification of accounts;
Reporting can be completed if the general ledger accounts are opened according to a unified chart of accounts and are adequate to the reporting items.
In order to separately account for increases and decreases, the account is divided into two parts: left - debit (D); right – credit (K).
Depending on what is reflected in the accounts, there are active, passive and active-passive. Active accounts reflect the movement of funds of the insurance company (for example, fixed assets, cash on hand, etc.). Passive accounts reflect the movement of the company's sources of funds (for example, authorized capital, profit, bank loan, etc.). On active-passive accounts, the balance can be either debit or credit. For example, the account “settlements with various debtors and creditors”.
Opening accounts, recording business transactions in them and closing them are carried out according to certain rules. When opening an account, the initial balance is recorded in it: on active accounts - in debit, on passive accounts - in credit. During the reporting period, the amounts of business transactions are reflected in the accounts: an increase - in the debit of active and credit of passive accounts; reduction - on the credit of active and debit of passive accounts.
The chart of accounts for the insurance company Rosgosstrakh-Povolzhye LLC differs from the general business chart of accounts and defines a special procedure for accounting for business transactions related to insurance (Appendix B).
Direct insurance operations include: receipt of insurance premiums (premiums) and payment of insurance compensation. To record transactions in accounting, the following accounts are provided: 92, 78, 22.
Account 92 “Insurance premiums (premiums) for direct insurance” - to summarize information on insurance premiums received under direct insurance contracts. The credit of account 92 reflects the insurance premiums received in correspondence with the debit of account 50 “Cash”, 51 “Current account” (Appendix B).
Analytical accounting for account 92 is carried out for those types of insurance for which a license has been obtained from an insurance organization, which is necessary for managing the organization and preparing reports. The following sub-accounts are opened for account 92:
1. Insurance premiums (contributions) under insurance contracts (main).
2. Insurance premiums (contributions) under coinsurance agreements.
3. Insurance premiums (contributions) under contracts accepted for reinsurance.
4. Insurance premiums (contributions) under contracts transferred to reinsurance.
Account 78 “Settlements for direct insurance” - to summarize information on the status of settlements of an insurance organization with policyholders, insurance agents and brokers under insurance contracts. The following sub-accounts are opened for account 78:
1. Calculations for insurance premiums (contributions) with policyholders.
2. Settlements with insurers, participants in the co-insurance agreement.
3. Settlements under contracts accepted for reinsurance.
4. Settlements under contracts transferred to reinsurance.
5. Payments for insurance premiums with insurance agents and insurance brokers.
6. Calculations for premium deposits.
The credit of account 78 reflects excess insurance premiums received; amounts of insurance premiums received but not processed in accordance with the established procedure. Analytical accounting in subaccount 78-1 is maintained for each type of insurance and for each insurance contract.
Subaccount 78-5 takes into account the settlements of the insurance organization with insurance agents and brokers for commissions for the provision of services of an insurance agent and broker. The credit of subaccount 74-5 in correspondence with the debit of account 26 “General business expenses” reflects the amount of commission accrued to the insurance agent and broker for concluding insurance contracts. The debit of subaccount 74-5 reflects the amounts of actually paid commissions to insurance agents in correspondence with the cash accounting credit. Analytical accounting for subaccount 74-5 is maintained for each agent, broker, as well as for types of insurance.
Account 22 “Insurance payments under insurance, co-insurance and reinsurance contracts” - to summarize information on the amounts paid to policyholders as a result of the occurrence of an insured event, paid to policyholders in case of early termination insurance contract. The following sub-accounts are opened for account 22:
1. Insurance payments under insurance contracts.
2. under coinsurance agreements.
3. Insurance payments under contracts,
4. Insurance payments under contracts transferred to reinsurance
The debit of account 22 reflects:
Amounts of insurance compensation or security paid;
Amounts paid to policyholders upon early termination of the insurance contract;
Amounts of insurance payments withheld in repayment of debt on loans issued under life insurance contracts.
Analytical accounting for account 22 is also carried out by type of insurance, as well as in other areas necessary for the insurance organization (Appendix D).
Accounting Form
A form of accounting is a specific system for constructing and combining accounting registers, the sequence and methods of recording in them. The features of individual forms of accounting are characterized by methods and techniques of accounting registration, the nature of the chronological relationship and the accounting system, analytical and synthetic accounting, methods of storing, searching and summarizing accounting data using computer technology in order to obtain the final indicators in the activities of the enterprise necessary for the adoption of management what decisions. Based on the data from the accounting registers, the enterprise's reporting is compiled.
The accounting form is chosen by the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, independently and does not change during the reporting period. Currently, the following forms of accounting are used: journal-order and automated.
In the journal-order form, all business transactions at the time of their completion are reflected in the primary documents. If there is a significant number of homogeneous business transactions, accumulative statements are compiled on the basis of primary documents. In this case, homogeneous transactions related to a specific account are recorded in the journals of the corresponding accounts throughout the month. At the end of the month, the results are displayed and entries are made in the general ledger.
Credit turnover is transferred to the general ledger account in one total amount per month, since it is contained in expanded form in the order journal. The debit turnover on the general ledger account is taken into account, detailed in correspondence with specific accounts. In the general ledger account, debit turnover is collected as data is posted from different order journals. Upon completion of the posting of turnover from the order journals to the general ledger accounts, the debit totals for each account are calculated, the balance at the end of the month is determined and a balance sheet is drawn up.
Using a journal of orders allows, when registering transactions in them, to quickly navigate the correspondence of accounts and prevent entries that do not correspond to the economic content. This form creates conditions for a broad division of accounting labor.
Automated form accounting, based on the use of electronic computer technology, is complex automation accounting process, starting from the collection of primary accounting data and ending with the receipt of financial statements. Processing of accounting data in the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, is carried out using the 1C: Enterprise - “TAISSA” program. This program allows you to automate the maintenance of all sections of accounting:
Bank and cash desk operations;
Materials;
Mutual settlements with organizations;
Calculations with accountable persons;
Payroll calculations;
Other accounting sections.
The program allows you to enter, store and print any primary documents: payment orders, invoices, cash receipts and debit orders, etc. “1C – TAISSA” includes a set of standard reports that allow you to obtain information for arbitrary period, in various sections and with the required degree of detail.
At the end of the month, a reconciliation of the journal-order and automated accounting forms is carried out and a reconciliation protocol is submitted to the branch of RGS-Povolzhye LLC in Ulyanovsk.
Chapter 2 Organization of accounting using an example
LLC "Rosgosstrakh-Povolzhye"
The insurance department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, maintains accounting records in accordance with the Federal Law “On Accounting” dated November 21, 1996. No. 129-FZ, Accounting Regulations (standards) approved by the Ministry of Finance of the Russian Federation, the Chart of Accounts for accounting financial and economic activities of organizations and the Instructions for its application, approved by Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n., as well as Additions and features of the use by insurance organizations of the Chart of Accounts for accounting the financial and economic activities of organizations, and Instructions for its application, approved by the Order of the Ministry of Finance in the Russian Federation dated 04.09.01. No. 69n and others regulations.
2.1 Economic characteristics of the insurance company and its results
financial activities
The insurance department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, is a representative of the most powerful insurance company of the Rosgosstrakh system, and deals with dozens of types of insurance for individuals and legal entities.
More than 20 thousand insurance contracts for property, buildings, transport, animals, life, etc. have been concluded with the population of the city and region. Almost every family living in the region and city has an insurance policy from Rosgosstrakh. At the same time, protecting the interests of citizens in this difficult time, the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, consciously maintains low tariff rates and periodically reduces them while simultaneously increasing the insured amount for the most popular socially significant types of insurance - insurance of household property, buildings , animals, etc. At the same time, at the time of concluding the contract, the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, insures the property or structure at its actual value, and pays insurance compensation for damage at prices at the time of the insured event, thereby the company covers the difference in inflation at its own expense . The insurance department of the city of Barysh, RGS-Povolzhye LLC, provides benefits to its regular policyholders for all types of insurance: a reduction in tariff rates, a one-month grace period for renewing the contract, payment of payments over several periods in agreement with the policyholders, the conclusion of insurance contracts for a period of 1 month up to 1 year. The services of the Insurance Department are used by industrial, commercial, and agricultural enterprises of the city and region. They insure the property of the enterprise, the life and health of their employees in case of unforeseen circumstances. Today, the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, is perhaps one of the few where new people can be hired. The agent network is growing. The Barysh Insurance Department has created good working conditions for both employees and clients. The premises have been refurbished, there is an own cash desk for settlements with policyholders, accounting and reporting are computerized. New types of insurance are being introduced, such as: OS AGO, RGS-Dom "Classics", RGS "Business Property", Burenka, etc. In total, over 10,0000 contracts were concluded, within 6 months, 106.2% of planned targets were fulfilled. Insurance premiums were collected over 3.5 million rubles, payments of insurance amounts amounted to about 1 million rubles. Most cases occur as a result of thefts, fires, animal deaths, and road accidents.
The Barysh insurance department of RGS-Povolzhye LLC occupies one of the leading places in the region in terms of the volume of insurance premiums (contributions) and coverage of the population with insurance contracts different types, has a stable financial position.
Highly qualified specialists in sales offices and loss settlement centers will help clients quickly prepare all the necessary documents and receive insurance compensation in a timely manner and in full.
In the Insurance Department of the city of Barysh, RGS-Povolzhye LLC, the volume of insurance premiums for voluntary types of insurance increased compared to the same period in 2004 (except for animal and transport insurance), although in general for all types they were fulfilled by 101.1%, as shown in table 2.1.
Table 2.1 - Volumes of insurance premiums
Insurance type | 1st half of 2004 | 1st half of 2005 | |
Structure | |||
Household property | |||
Transport physical Persons | |||
Animals of citizens | |||
Specialist in physical education Persons | |||
All types of insurance |
At the same time, there was a decrease in the renewal of insurance contracts for voluntary types of insurance, as can be seen from the data presented in Table 2.2.
Table 2.2 - Comparative table of contracts
According to Table 2.3, it can be seen that the insured amount by type of insurance has increased compared to the same period in 2004, except for transport and animal insurance.
Table 2.3 - Accounting for insurance amounts
1) Analyze the performance indicators of the Insurance Department of the city of Barysh of Rosgosstrakh-Povolzhye LLC, inspector and agency areas in order to increase its share in the insurance market of the region and improve the financial position of the department;
2) Develop measures to improve performance, focusing on:
Concluding new contracts;
Renewal of contracts;
Increasing insurance amounts by type of insurance, achieving real insurance protection;
Development of corporate sales, i.e. work with legal entities.
2.2 Principles of accounting organization
In the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, accounting is carried out by a special service - accounting. Accounting is carried out by employees who are assigned responsibilities for its maintenance. The chief accountant of the insurance company, who heads the accounting service, acts in accordance with the Federal Law “On Accounting”, the Regulations on Accounting and Reporting in the Russian Federation. He reports to the head of the company and is responsible for organizational and methodological issues of accounting; Responsibility for financial and economic activities rests with the head of the insurance organization.
The chief accountant signs documents related to the receipt and issuance of funds, merchandise material assets, credit and settlement obligations, agreements on full financial liability.
The main task of accounting is to contribute to the achievement of positive business results. To do this it is necessary to provide:
Availability of information on the actual results of the insurance company’s activities, necessary at all levels of management;
Control over the preservation of funds and their legal and intended use;
Reliable accounting of expenses and income;
Accurate calculation and timely settlements with the budget and other creditors for deductions and payments;
Correct and timely preparation of financial statements.
The main functions of the accounting department of the Insurance Department of the city of Barysh: accounting for material and technical assets (fixed assets, materials, etc.), accounting for calculations of wages (payroll, deduction from wages, contributions to social insurance, to the pension fund), accounting for insurance operations (receipt of insurance premiums, payment of insurance compensation), accounting for business expenses, other income and expenses, accounting for financial activities (profits, funds and reserves), accounting for cash transactions (cash in hand, in a current account) , preparation of financial statements.
The required number of accountants depends on the volume of information processed for each accounting object and is calculated on the basis of standard time standards and service standards for accounting.
The insurance department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, while organizing accounting, independently establishes:
1) accounting policy;
2) organizational form of accounting work;
3) forms and methods of accounting, technology for processing accounting information, based on the forms and methods existing in the Russian Federation;
4) a system of in-process accounting, reporting and control.
The basic rules of accounting, in accordance with the Regulations on Accounting and Reporting, are as follows:
Compliance during the reporting period with the adopted accounting policy for reflecting individual business transactions and assessing property;
Completeness of reflection in the accounting for the reporting period of all business transactions carried out during this period and the results of the inventory;
Correct attribution of income and expenses to reporting periods.
Accounting in the Insurance Department is carried out using computer technology for processing accounting information in combination with traditional (manual) forms of accounting in a journal-order form. To systematize and accumulate information contained in the primary accounting documents accepted for accounting, for reflection on accounting accounts and in financial statements, accounting registers are maintained in the form of machine diagrams:
1) Book-Main.
2) Order journals:
2.1 journal-order No. 1 “Cash desk”;
2.2 journal order No. 2 “Current account”;
2.3 journal order No. 3 “Settlements with accountable persons”;
2.4 journal order No. 4 “Settlements with personnel for wages”;
2.5 journal order No. 5 “Other operations”;
3) Cash book.
4) Turnover statements for synthetic and analytical accounts.
5) Form book strict reporting Form No. 24.
6) Personal accounts for recording received and used strict reporting forms f.25.
Business transactions are documented using primary documents according to the forms contained in the albums unified forms primary accounting documentation and approved in accordance with the established procedure.
In the insurance department, accounting is carried out using 1-C "TAISSA" software. At the close of the reporting period, the database from the 1C-TAISSA software is transferred to the Office for the Ulyanovsk Region - a branch of Rosgosstrakh-Povolzhye LLC.
2.3 Accounting for funds and settlements with accountable persons
To make cash payments, the Barysh Insurance Department of RGS-Povolzhye LLC has a cash desk. The cash register room is specially equipped to provide necessary conditions safety of funds. The head of the company is responsible for creating such conditions.
Cash transactions are carried out by a cashier who, upon hiring, is familiar with the rules for conducting cash transactions upon signature and with whom an agreement on full financial responsibility has been concluded. The cashier bears full financial responsibility for the safety of all valuables accepted by him (cash, monetary documents).
The insurance company has cash in its cash desk within the cash balance limit of 10 thousand rubles. and uses them from the proceeds within the limits. The limit on the cash balance in the cash register and the rate of use of proceeds is established by the bank establishment in agreement with the head of the company. In excess of the limit, cash is kept in the cash register only during salary payments for no more than 3 working days, including the day the money is received from the bank. Without limiting the norms, cash from the proceeds of a company that has constant receipts of insurance premiums for wages, for the payment of insurance compensation to citizens, etc. can be spent. The company deposits all cash in excess of the limit to the bank. The insurance company's cash desk accepts cash based on incoming cash orders; issued - according to cash receipts orders or other documents (pay slips, bills, etc.), handed over to the bank - through a collection order, on the basis of which funds are debited from the payers' accounts in an indisputable manner.
The procedure for conducting cash transactions is as follows:
Preparation of primary documents for receipts and expenses;
Registering them in the log book;
Entries in the cash book (in two copies);
Daily balance calculation cash book;
Submission to the accounting department of the cashier's report with receipts and consumable documents against receipt in the cash book.
Control over cash flows (the procedure for the formation, storage and use of funds) is the most important task of the accounting department of an organization, regardless of its legal form, field of activity and industry affiliation. Control is carried out by taking inventory of the cash register, checking the intended use cash flows, compliance with cash and settlement and payment discipline. Within the time limits established by the head of the company, a sudden audit of the cash register is carried out with a complete recalculation of funds. The audit is carried out by a commission appointed by the head of the company and audit commissions of higher organizations. During the audit, they control the correctness of the entries in the cash book, their compliance with the contents of receipt and expenditure documents, and the completeness of the posting of cash received from the bank or from other sources. The commission draws up an inventory report, based on the results of inspections, the identified surpluses or shortages of funds and the circumstances of their occurrence are indicated (Appendix E).
The main accounting entries for accounting for cash transactions and monetary documents are shown in table 2.3.1.
Table 2.3.1 - Accounting for cash transactions and monetary documents
Document | Corresponding accounts | |||
D-t | Kit | |||
Insurance premiums received | ||||
The balance of unused items was handed over to the cashier sums of money accountable person | ||||
Collection of funds submitted to the bank | Transmittal sheet | |||
Table continuation |
||||
Document | Corresponding accounts | |||
D-t | Kit | |||
Salaries issued to employees | Calculation fees statement | |||
Insurance compensation paid | ||||
An advance was issued for the purchase of office supplies |
The current account is the main account of the company through which all monetary transactions without limiting their list. The Baryshsky insurance department of RGS-Povolzhye LLC has its own current account in the Baryshsky OSB No. 4260 branch of the Ulyanovsk OSB No. 8588 Ulyanovsk.
An agreement for settlement and cash services was concluded between the bank and the company, which stipulates: the cost of opening a current account, services for settlement and cash services, cash circulation.
Receiving and issuing money from a current account or non-cash payments are made by the bank on the basis of documents approved by it. The most common of them are: announcement for cash payment, cash check, payment order, collection order.
Payment order represents an order from the Barysh Insurance Department to the bank to transfer a certain amount from its account to the account of another organization. Payment orders are used to pay for goods, works and services; taxes and deductions are transferred. Payment orders are valid for 10 days from the date of issue and are accepted for execution only if there are funds in the account. The procedure for settlement by payment orders is as follows: the buyer (payer) submits a payment order to the bank. The buyer's bank debits money from the payer's account and sends payment orders to the supplier's (recipient's) bank. The supplier's bank credits money to his account in accordance with the payment order. Banks issue bank account statements to their clients.
A check is used by an organization to receive cash from a current account; it is issued in one copy in the name of the cashier or other person who is entrusted with receiving the money. The check form consists of the check itself, the counterfoil of the check and the control stamp. All parts have the same number; the counterfoil of the check remains in the checkbook, the check is cut off and presented to the bank, and the control stamp is issued by the bank employee to the representative of the organization to receive money at the bank's cash desk.
The main accounting entries for accounting for funds in the current account are shown in Table 2.3.2.
Table 2.3.2 - Accounting for transactions on a current account
| Document | Corresponding accounts | |
|
D-t | Kit |
|||
Received rent for the current rental of premises | Payment order | 51 | 91 | 15000-00 |
Transferred to account insurance premium for compulsory motor liability insurance | Payment order | |||
Accrued bank commissions | Memorial Order | |||
Taxes transferred | Payment order No. 36 | |||
Received from the company's cash desk to the current account | Collection order |
In the accounting department of the insurance department of RGS-Povolzhye LLC, to account for these transactions, an independent active account 51 “Current account” was opened, in which the transactions indicated in the bank statement are recorded in reverse: receipts are debited to the account, and disposals are credited to the account. The insurance company receives from the bank a daily account statement with copies of documents on the basis of which funds were credited or debited. Checked and processed statements are the basis for entries in the accounting registers.
In the business practice of an organization, expenses often arise that are incurred through its employees, who are given cash on account.
Accountable persons are employees of the insurance company who received advance cash amounts for upcoming operating, business and travel expenses.
The insurance company issues cash on account for operating and business expenses in a certain amount and for a period determined by the head of the company. Unspent cash issued on account must be returned to the insurance company's cash desk no later than 3 days after the expiration of the period for which it was issued. Persons who received cash on account are required to submit to the company's accounting department a report on the amounts spent with documents attached, return unspent amounts or receive overspent amounts from the cash register. Cash is issued on account subject to a full account of the amounts previously issued on account. Synthetic accounting of settlements with accountable persons is carried out on active-passive account 71 “Settlements with accountable persons”.
The main accounting entries for accounting for settlements with accountable persons are shown in Table 2.3.3.
Table 2.3.3 – Correspondence of accounts for accounting of settlements with accountable persons
2.4 Accounting for insurance transactions
In the insurance department of RGS-Povolzhye LLC, insurance operations include: receipt of insurance contributions (premiums), payment of insurance compensation.
Account 92 “Insurance premiums (contributions) for direct insurance.” Accounting for insurance transactions can be carried out either by accrual of premiums or by payment. The chosen accounting method must be reflected in the accounting policies of the insurance company. This insurance company uses a method for receiving insurance premiums, i.e. according to accrual. When accounting for insurance premiums “on accrual basis”, the amounts of accrued insurance premiums are reflected separately
(D account 78, K account 92) and their receipt by the insurance organization (D account 50,51, account 78).
Under insurance contracts accounting entry on account 92 “Insurance contributions (premiums) for direct insurance” are made at the moment the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, has the right to receive an insurance premium (contribution) from the insured, depending on the procedure for concluding the contract:
The date of signing the insurance contract by the parties or delivery insurance policy to the policyholder, if the insurance contract is concluded by signing by the parties or delivering the insurance policy to the policyholder, based on a written application from the policyholder;
The date of acceptance of the agent's report when concluding an insurance contract through an insurance agent.
The insurance premium is calculated in full regardless of whether the insurance contract provides for a deferred payment of the premium or not.
When using the “on payment” method, an accounting entry is given only when insurance premiums are received (D account 50.51 K account 78). In this case, account 78 “Calculations for direct insurance” is used only when insurers receive excess amounts or insurance premiums not registered in the prescribed manner (D account 50.51 To account 78). Then these amounts are either returned to the policyholder (D account 78, To account 50.51), or after they are written off to the account before registration. 78.
Insurance premiums may also be deducted from the amount of insurance compensation in the event that by the time it is paid in accordance with the contract, the next insurance premium is due.
To account for insurance transactions, account 22 “Insurance payments for direct insurance” is used, subaccount 22-1 “For insured events of the period preceding the reporting period, which were reported in the previous period”, 22-2 “For insured events of the period preceding the reporting period, about which were declared in the reporting period”, 22-3 “For insured events of the reporting period”, 22-4 “For early terminated contracts”.
Accounting for insurance compensation payments can also be carried out either “on accrual basis” or “on payment basis”. When using the “accrual” method, two entries are made: accrual of insurance compensation (D ch.22, K ch.78), and its payment (K ch.51, D ch.78); when using the “on payment” method, an accounting entry is made only when transferring insurance compensation (D ch.22, K ch.50,51).
Part of the insurance premiums under voluntary insurance contracts is returned by the insurer in cases of voluntary termination of the insurance contract on the grounds and in the manner provided for in Article 23 of the Law of the Russian Federation “On Insurance”:
If the policyholder fails to pay insurance premiums within the terms established by the contract;
In the event of liquidation of the policyholder, who is a legal entity, or the death of the policyholder, who is an individual;
In the event of the death of the insured;
By agreement of the parties.
Amounts paid by the insurer upon early termination of contracts are taken into account on account 22-4 (D account 22-4, K account 50,51). At the end of the reporting period, account 22 is closed.
The main accounting entries for direct insurance transactions are shown in Table 2.4.1.
Table 2.4.1 - Accounting for direct insurance transactions
The deadlines for submitting the agent's report to the insurance organization are established by the relevant administrative document (order). Each insurance agent submits a weekly report on his reporting day according to the schedule.
2.5 Payroll accounting
Remuneration is a set of funds paid to employees in cash both for time worked, work performed, and in the prescribed manner for time not worked. The remuneration of each employee depends on his personal labor contribution and the quality of work.
Accounting for wages by type is regulated by the basic provisions for accounting for labor and wages, the regulations on the procedure for providing benefits for state insurance and others.
Labor and wage accounting should provide operational control over the quantity and quality of labor, the use of funds included in the wage fund, and social payments.
Labor and wage accounting is carried out on the basis of standard document forms:
Order (instruction) on hiring;
Order to transfer to another job;
Calculation note regarding the provision of leave;
Order to terminate an employment (civil) contract;
Working time sheet;
Payroll.
In the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, for each employee at the beginning of the year or upon hiring, the organization’s accounting department opens a personal account, as well as an individual card accounting for the amounts of accrued payments and other remunerations, the amounts of accrued unified social tax, as well as the amounts tax deduction with a cumulative total for the whole year.
Labor costs include:
Payments of wages for actual work performed, calculated on the basis of official salaries in accordance with the forms and systems of remuneration accepted in the organization;
Payment of labor to employees who are not on the company’s staff for the performance of work under concluded civil contracts.
In accordance with labor legislation, wages to employees of the insurance department are paid at least every half month within the time limits established by the collective agreement. Advance payment to employees for the first half of the month is applied. The advance is calculated in the amount of 40% of the official salary and is paid on the 25th of each month.
The source of remuneration can be the funds of the Social Insurance Fund of the Russian Federation remaining in the organization. These funds can be used to pay temporary disability benefits; maternity benefits; lump sum benefit for the birth of a child; monthly allowance for the period of parental leave until the child reaches the age of one and a half years.
In accordance with current labor legislation, all employees have the right to annual leave while maintaining their place of work and average earnings. Annual paid leave is provided to employees for at least 28 calendar days. Besides, individual categories employees are provided with additional leaves. The number of days of such leave is determined in accordance with current legislation and collective agreements.
Additional wages (vacation pay, etc.) are accrued on the basis of documents confirming the employee’s right to payment for time not worked, according to average earnings. When calculating average earnings, payments for which insurance premiums are calculated are taken into account. Average earnings is calculated for three calendar months (from the 1st to the 1st day) preceding the month the employee goes on vacation, dismissal, etc.
The average daily earnings of an employee during vacation are determined by dividing the amounts actually paid in the billing period by 3 and by the appropriate coefficients, depending on whether the vacation is set in working days or calendar days.
In case of illness, employees receive temporary disability benefits (sick leave) for all working days missed due to illness. The amount of the benefit depends on the nature of the disability, the reasons that caused it, the length of continuous work experience, etc. The temporary disability benefit is calculated from the employee’s actual earnings, the duration of the billing period is 12 calendar months.
Upon termination of an employment relationship with an employee, compensation for unused vacation, severance pay and subsequent payments established by the legislation of the Russian Federation are accrued based on average earnings, taking into account the tariff rates (salaries) in effect at the time of termination of the employment contract with the employee. If the employee used the vacation in advance, then the amounts for the days of vacation paid from the average daily earnings calculated at the time the vacation was granted are collected from him.
All persons working part-time are provided with annual paid leave for combined work or are paid compensation for unused leave upon dismissal.
The main accounting entries for accounting for payroll are shown in Table 2.5.1.
Table 2.5.1 - Correspondence of accounts for wage accounting
The main principle of organizing the work of an insurance agent is to encourage actions aimed at increasing the volume of incoming insurance premiums and qualitatively improving the structure of the portfolio. The following are eligible for promotion:
Increasing the number of insurance contracts with new clients;
Extension of a previously concluded contract;
Exceeding targets for insurance premium collection.
Payment of monetary remuneration to Agents is carried out in rubles in cash through the cash desk of the Insurance Department. Agent's commission paid for performing a set of works on concluding insurance contracts and receiving insurance premiums, namely: negotiations with policyholders; explaining to him the terms of insurance; correct execution and timely delivery of contracts, policies, receipts and other necessary documents; ensuring receipt of the insurance premium to the accounts or cash desk of the Insurance Department of RGS-Povolzhye LLC. The basis for determining agency fees are estimated rates. The size of the settlement rates takes into account: the labor market and economic situation in the region, the coefficient of regional regulation of wages, agency remuneration rates in competing insurance companies.
For insurance agents - individuals working on the staff of an insurance company, the accrued commission is included in the costs of running the business (D account 26, K account 76) under the item “Payroll Fund”. The amounts of accrued commission in this case are included in the payment fund of the insurance company.
The main accounting entries for settlement transactions with insurance agents are shown in Table 2.5.2.
Table 2.5.2 - Accounting for commissions to insurance agents
Document | Corresponding accounts | ||||
D-t | Kit | (rub.) | |||
Commissions accrued to insurance agents | 20 | 76 | 13834-06 | ||
Commissions issued to insurance agents | Payroll | 76 | 50 | 13834-06 |
The following deductions are made from the accrued wages of employees: personal income tax, etc. Personal income tax is withheld in accordance with the Law “On Personal Income Tax” and the Instructions for its application. Personal income tax is calculated based on the total annual income received in a calendar year. Income also includes the amounts of material benefits provided by the company personally to its employees. Not included in the total annual income: social insurance benefits, maternity benefits, paid at the birth of a child, for caring for a child until he reaches a specified age, etc.
Income tax for individuals is calculated from the beginning of the calendar year at the end of each month from the amount of taxable income at current rates, with the previously withheld tax amount offset.
From January 1, 2005, in accordance with sub. 4 paragraphs 1 art. 218 Tax Code of the Russian Federation tax deduction provided in the amount of 600 rubles. for each month of the tax period per child.
The specified tax deduction is valid until the month in which the taxpayers’ income, calculated on an accrual basis from the beginning of the tax period ( tax rate 13%) tax agent, providing this standard tax deduction, exceeded 40,000 rubles. Starting from the month in which the specified income exceeded 40,000 rubles, the tax deduction is not applied.
2.6 Accounting for settlements with various debtors and creditors
In the process of financial and economic activities in the Insurance Department in the city of Barysh, RGS-Povolzhye LLC, settlement relationships arise that reflect mutual obligations associated with the sale of material assets, the performance of work or the provision of services to each other.
When an organization sells products, goods, services or work to other legal entities and individuals and when making settlements with them, short-term and long-term obligations arise, which are receivables.
When an organization purchases products, goods, services or work to other legal entities and individuals and when making settlements with them, obligations arise that constitute accounts payable.
The period during which accounts receivable and payable are reflected in accounting and reporting includes the period of time with which civil law associates certain legal consequences
Settlements with various debtors and creditors for an insurance company arise for various reasons: claims against guilty parties for compensation of material damage, insurance of property and personnel, etc. Settlements with various debtors and creditors are taken into account on the basis of a wide variety of documents: court decisions, writs of execution, acts for payment of insurance compensation, certificates, calculations, etc. (Appendix G). To account for various relationships with other enterprises, organizations, and individuals, active-passive account 76 is used. Analytical accounting for account 76 is maintained in the balance sheet for each debtor and creditor. The balance of account 76 is determined from the turnover sheet for the analytical accounts of account 76. The following sub-accounts can be opened for account 76:
1 “Calculations for property and personal insurance”;
2 “Calculations for claims.”
Subaccount 1 “Calculations for property and personal insurance” reflects calculations for insurance of property and personnel of the organization, in which the organization acts as the insured. The accrual of income is reflected in the debit of account 76 subaccount “Calculations for financial investments” in correspondence with account 91 “Other income and expenses”. The transferred amounts of insurance payments to policyholders are written off from credit 51.52 to debit 76-1. Debit 76-1 of the account reflects the amount of insurance compensation due under the insurance contract to an employee of the organization. The amounts of insurance compensation received by the organization are reflected in debit 51.52 and credit 76-1.
Subaccount 2 “Calculations for claims” of account 76 reflects calculations for claims presented to the guilty parties for various types of insurance. The amounts of satisfied claims are written off from the credit of account 76-2 to the debit of cash accounting accounts (51.52).
The main accounting entries for accounting for settlements with various debtors and creditors are shown in table 2.6.1.
Table 2.6.1 - Accounting for settlements with various debtors and creditors
2.7. The procedure for recording expenses (except for insurance payments)
Expenses (except for insurance payments) associated with carrying out insurance operations, drawing up insurance contracts, management and other expenses associated with carrying out insurance activities are recorded on the account
26 “General business expenses”.
Other expenses, including expenses associated with the disposal of financial investments, fixed assets and other property of the Company, as well as expenses associated with making compensation payments under life insurance contracts concluded before 01/01/92. are reflected in account 91 “Other income and expenses”.
The costs of conducting insurance operations include:
1) costs for concluding insurance contracts, including remuneration to insurance agents, accruals for remuneration to insurance agents, the cost of used forms;
2) other expenses for conducting insurance operations, including commissions under reinsurance contracts, advertising costs, payment for services independent expert when conducting an examination under voluntary insurance contracts, under compulsory insurance contracts civil liability owners Vehicle, if expenses are incurred by the Company, as well as 50% of the following types of expenses:
To pay full-time employees;
Accruals for wages of full-time employees;
Expenses for maintaining office premises (rent, utility bills, etc.).
General business expenses that are not included in the costs of conducting insurance operations are classified as administrative expenses.
The agent's remuneration for concluding an insurance contract is accrued subject to the following conditions:
Liability under the insurance contract has arisen;
The insurance premium was transferred to the cash desk (current account) of the organization.
In the case of concluding an insurance contract for types other than life insurance with payment of the insurance premium in installments, the agent’s remuneration is calculated from the amount of the actual contribution received to the cash desk (to the current account).
2.8 Accounting for insurance reserves
In accordance with the Law of the Russian Federation “On the organization of insurance business in
Russian Federation" the basis for the financial stability of insurers is the presence of their paid-up authorized capital and insurance reserves, as well as the reinsurance system.
To ensure accepted insurance obligations, the Insurance Company, in the manner and under the conditions established by the legislation of the Russian Federation, forms from the received insurance premiums the insurance reserves for personal insurance necessary for upcoming insurance payments, property insurance and liability insurance. In a similar manner, reserves are created to finance measures to prevent accidents, loss or damage to insured property.
Insurers form life insurance reserves based on
independently developed and agreed with the Ministry of Finance of the Russian Federation Regulations on
formation of insurance reserves for life insurance.
lives are formed in order to ensure the fulfillment of obligations
the insurer for insurance payments, under insurance contracts when the insured survives to a certain age and (or) the death of the insured.
The composition, purpose and procedure for the formation of insurance reserves formed by an insurance company to ensure the fulfillment of obligations under insurance contracts other than life insurance are determined by regulatory and technical guidelines approved by order of Rosstrakhnadzor dated March 18, 1994. No. 02-02/04 - “Rules for the formation of insurance reserves for types of insurance other than life insurance.”
The amounts of insurance reserves are calculated when determining the financial result from insurance activities for reporting date. The report on insurance reserves is submitted to the Ministry of Finance of the Russian Federation as part of the annual accounting report.
In accordance with the charter, the insurance company adopted a Regulation on the procedure for forming technical reserves for types of insurance other than life insurance. The Regulations establish what types of technical reserves are formed by the insurer for the types of insurance for which licenses have been obtained, and define methods for their formation.
The technical reserves of the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, include only four mandatory types technical reserves defined by the Rules: reserve of unearned premiums; reserve for reported but unresolved losses; reserve for incurred but unreported losses, life insurance reserve. When forming other technical reserves or using methods of their formation other than those provided for by the Rules of March 18, 1994. The provision must be agreed with the Ministry of Finance of the Russian Federation.
The main indicator for calculating the reserve of unearned premium (URP) is the base insurance premium for each insurance contract. The basic insurance premium (BIP) is equal to the difference between the gross insurance premium received in the reporting period under an insurance contract, the commission actually paid (accrued) to insurance intermediaries for concluding an insurance contract, and the amount of funds allocated for the formation of a reserve of preventive measures. In this case, the gross insurance premium is understood as the amount of funds received to the insurer’s bank account in accordance with the terms of the contract.
The unearned premium reserve (UPR) represents the basic
insurance premium received under insurance contracts valid in the reporting period and relating to the period of validity of the insurance contract that extends beyond the reporting period (Appendix K).
The reserve for declared but unresolved losses (RLU) was created by the insurance company to ensure the fulfillment of obligations, including expenses for the settlement of losses, under insurance contracts that were not fulfilled or not fully fulfilled as of the reporting date, arising in connection with insured events that occurred in the reporting or periods preceding it and the fact of the occurrence of which was notified to the insurer in the prescribed manner.
The reserve for declared but unresolved losses (RUL) is determined by
each unresolved claim in accordance with the amount of damage,
caused by the occurrence of an insured event and subject to compensation,
according to the terms of the insurance contract. If a loss is claimed, but
the amount of damage has not been established; for the calculation, the maximum possible amount of loss is taken, not exceeding insurance amount. The amount of the RZU is equal to the amount of declared losses for the reporting period, increased by the amount of unresolved losses for the periods preceding the reporting period, and reduced by the amount of losses already paid during the reporting period plus losses settlement costs in the amount of 3% of the amount of unresolved claims for the reporting period (Appendix L).
The reserve for occurred but unreported losses was created to ensure that the insurance company fulfills its obligations, including losses settlement expenses, under insurance contracts that arose in connection with insured events that occurred during the reporting period, the occurrence of which was not notified to the insurer as prescribed by law or contract order as of the reporting date.
The reserve for incurred but unreported losses (IBNR) is calculated in
in the amount of 10% of the amount of the basic insurance premium received in the reporting period
period, if the reporting period is considered a calendar year; in the amount of 10% of the amount of the basic insurance premium received in the reporting period, and three periods preceding the reporting period, if the reporting period is considered a quarter (Appendix M).
Insurance reserves by types of insurance related to insurance
life, are formed to ensure the fulfillment of the insurer's obligations for insurance payments under concluded insurance contracts when the insured survives to the age or period specified in the insurance contract, or the death of the insured, if this is provided for in the insurance contract.
Insurance reserves for life insurance are formed by the insurer for each type of insurance and in the currency in which the insurance is carried out. The basis for calculating the amount of the life insurance reserve is the net insurance premium for concluded insurance contracts, calculated on the basis of the total insurance premium for life insurance contracts received in the reporting period minus the part of the insurance premium corresponding to the share of the load in the structure of the insurance tariff.
The insurer's obligations for types of life insurance are calculated from
taking into account the rate of return used by the insurer when calculating insurance rates and agreed with federal body executive power for supervision of insurance activities.
If the conditions for the type of insurance provide for the application of the norm
profitability depending on the insurance period, the amount of the reserve is determined by
a set of insurance contracts grouped depending on
rate of return used in calculating insurance rates,
agreed with the federal executive body for supervision of
insurance activities.
This insurance company does not reflect reserves in accounting accounts, but only calculates reserves in the ARM-Insurer program.
Chapter 3 Accounting statements and their audit in insurance
companies
Accounting statements are a system of indicators that reflect the results of an organization’s economic activities for the reporting period. When considering financial statements, one should be guided by the Federal Law “On Accounting”, the Regulations on Accounting and Accounting Reports in the Russian Federation dated July 29, 1988 No. 34n, the Regulations “On Forms of Accounting Reports of Organizations”, “Instructions on the Procedure for Compilation and presentation of financial statements”, approved by order of the Ministry of Finance of the Russian Federation dated January 13, 2000 No. 4n.
Preparation of financial statements is the final stage of the accounting process in an insurance company, which cumulatively reflects the property and financial position, results of financial and economic activities for the reporting period. Reporting is necessary for the operational management of economic activities. Reporting must be reliable and timely. Financial reporting indicators are directly and indirectly formed from the General Ledger accounts or derived from accounting data obtained as a result of special calculations. From this follows the connection between accounting and reporting, which consists in the fact that summary accounting data is transferred to the corresponding reporting forms in the form of final indicators. A careful study of financial statements reveals the reasons achieved successes or shortcomings in work, outline ways to improve the activities of the insurance company.
When preparing financial statements you must:
The main regulatory acts regulating the procedure for preparing financial statements of the Barysh Insurance Department of RGS-Povolzhye LLC are the Federal Law “On Accounting” and the Accounting Regulations “Accounting Statements of the Organization”. The reporting of the Insurance Department of RGS-Povolzhye LLC is classified by type, frequency of preparation, and degree of generalization of reporting data. By type, reporting is divided into accounting, statistical and operational. Based on the frequency of preparation, a distinction is made between interim and annual financial statements. Intermediate is monthly and quarterly financial statements, compiled on a cumulative basis from the beginning of the year. In the interim financial statements, in addition to the balance sheet and explanatory note, in order to increase the efficiency of budget planning, from 01/01/2004, the Insurance Department of the city of Barysh, RGS-Povolzhye LLC, submits monthly new form operational reporting - cash budget (Appendix N). The cash budget is a mandatory reporting form for all divisions of the Rosgosstrakh System.
The cash budget is intended for planning and monitoring the cash flow of the division, their optimal use and forecasting the liquidity of the division's activities.
A report on the actual execution of the cash budget is submitted monthly within 5 working days of the month following the reporting month.
The head of the department bears personal responsibility for the timely submission of the cash budget and the report on its execution, as well as for the accuracy of the data presented.
The cash budget and the report on its execution reflect only transactions made in cash. Operations reflected in the cash budget and the report on its execution are taken into account on the date of receipt or transfer of funds, regardless of the period to which these operations relate (accrued in accounting).
The cash budget reflects all operations related to the movement of funds in the current accounts of the department and in the cash register. Thus, the main sources of information for drawing up the cash budget and the report on its execution are documents to the journal order No. 1 “Cash” and No. 2 “Cash account”.
Explanation of cash budget lines: .
Page 104 "Cash at the beginning of the period"- The amount of funds in all current accounts and in cash at the beginning of the reporting period (must be equal to the funds at the end of the reporting period).
Page 105 "Cash at the end of the reporting period"- The amount of cash in all accounts and in cash at the end of the reporting period.
Page 106 "Cash on the way"- Transfer of funds between accounts (within the organization), or funds sent from one account, but not received by another, or funds received at the cash desk, but not credited to the current account on the reporting date.
P.107 "Deviation"- = p.100+p.104-p.105-p.106 - Must be equal to zero. Otherwise, you should look for inaccuracies when drawing up the cash budget.
Page 109 "Insurance premiums (contributions) for direct insurance"- Insurance premiums for all types of insurance for direct insurance (except for premiums for accepted reinsurance), taking into account contributions received under agency contracts. This article also includes premiums (contributions) received from the insurance broker.
Page 116 "Receipts for recourse and return of payments made"- Facilities,
received on recourse claims and the amount of returned insurance payments
Page 119 "Proceeds from the rental of property"- Receipts from the rental and sublease of property (buildings, premises, transport, hardware, office equipment and other property, as well as compensation from tenants for utilities and communication services)
Page 121 "Other receipts"- Other income from current activities. In particular, this article reflects:
1) the amount of return of funds taken on account (travel allowances, etc.), 2) funds credited to the account that were in transit in the past month;
3) money received for lost specials. signs and policies for compulsory motor liability insurance;
4) funds transferred from the directorate’s account to the department’s account (upon request)
Simultaneously with the cash budget and the report on its execution, an explanatory note is submitted, in which expenses on “other” and “other” budget items must be deciphered and explained (" Other income", "Other operating costs", etc.), as well as for items (going through the development budget) for which it is required coordination for individual objects (for example, " Personnel costs" p.160, "Office expenses" pp. 172,173,174,175, "Purchase of furniture and office equipment(except IT)" p.282, "IT capital expenditure" pp.283-299; or for individual events (for example, " Advertising and PR" pp.207-210, "PR costs" p.224).
Page 123 "Insurance payments for direct insurance"- Insurance payments to policyholders, payment for the services of service centers for the restoration of vehicles and other expenses directly related to compensation to the policyholder for property and other damage in accordance with the insurance contract, as well as the amount upon termination of the insurance contract.
Page125 "Remuneration for the provision of services of an insurance agent (IC)"- Payment of commissions to insurance agents, taking into account personal income tax and other deductions (alimony, etc.).
Page 126 "Remuneration for an insurance broker"- Costs of paying for the services of an insurance broker for concluding insurance contracts.
Page 137 "Other operating costs"- The transfer of funds to the directorate to replenish the account is reflected.
Page 141 "Payment based on official salaries"- Payment of full-time employees according to official salaries, taking into account personal income tax and other deductions made in accordance with current legislation (alimony, etc.).
Page 145 "Other bonuses and incentive allowances"- Incentive payments (bonuses) to full-time employees in accordance with the Regulations on bonuses for full-time employees approved by the regional division, as well as additional payments and incentive allowances, taking into account personal income tax and other deductions.
Page 148 "Other types of expenses for remuneration of full-time employees"- Other payments to full-time employees for wages - Labor costs associated with compensation payments on life insurance.
Page 150 "Other types of expenses not related to wages incurred in favor of full-time employees" - Financial assistance and other payments to full-time employees that are not related to wages ( payments for sick leave ). Financial assistance for funerals, payments for holidays and anniversaries, taking into account personal income tax and other withholdings.
Page 155 "Reimbursement for agents' travel"- Reimbursement to insurance agents for travel expenses to policyholders, taking into account personal income tax and other deductions.
Page 157 "Other types of expenses not related to wages incurred in favor of insurance agents"- Financial assistance and other payments to insurance agents ( sick leave payments) and etc.
Page 158 "Deductions for social needs"- Payment of the unified social tax and contributions to the Social Insurance Fund in accordance with the procedure established by the legislation of the Russian Federation.
Page 169 "Payment of rent of buildings and structures" - Amounts transferred to landlords in accordance with the lease agreement for buildings and premises.
Page 170 "Utilities"- Payment costs utilities(electricity, water supply, heat supply, etc.), including payment for utilities, which are subsequently compensated by tenants (receipts of compensation from tenants are reflected according to p.119).
Page 180 "Maintenance and repair of vehicles"- Expenses for technical
vehicle maintenance (current and warranty), purchase of spare parts, costs of routine repairs (replacement of units and parts, body repair, painting, etc.), purchase of rims, tires, components, as well as purchase of consumables (oils, fluids) etc.). This article does not take into account the costs of vehicle registration and payment for technical inspection.
Page 181 "Payment for fuel and lubricants"- Costs for the purchase of fuel (gasoline, diesel fuel, liquefied gas) and lubricants for vehicles.
"Taxes and fees" are included in the cash budget in accordance with the established procedure.
To compile and present the cash budget and report on its execution, it is used software UGS-Finance.
The accounting statements of the Insurance Department of the city of Barysh consist of:
Balance sheet (Appendix O);
Cash flow statement;
Appendixes to the balance sheet and other reports;
An auditor's report confirming the reliability of the organization's financial statements (Appendix P).
In order to ensure the reliability of accounting and reporting data, an inventory of fixed assets, inventory, accounts receivable and accounts payable, funds are made once a year when preparing annual financial statements, as well as in other cases when conducting an inventory is mandatory.
Inventory is a clarification of the actual availability of property and financial obligations by comparing them with accounting data as of a certain date.
Carrying out an inventory is mandatory: when there is a change in the financially responsible person, when facts of theft, abuse or damage to property are revealed, during the reorganization of the Company, in other cases provided for by the legislation of the Russian Federation.
The order to conduct an inventory is issued by the head of the insurance organization. At the end of the inventory, the commission draws up a protocol, noting its decisions and proposals, which is approved by the head of the organization. Then the procedure for regulating the identified differences between inventory and accounting data is determined.
Thus, inventory is the most important tool for determining whether the actual availability of property and liabilities corresponds to accounting data; it performs the function of monitoring the safety of fixed assets, inventory and cash, identifies on-farm reserves for the purpose of their subsequent use and provides information material necessary for making well-thought-out management decisions.
The insurance department of the city of Barysh, RGS-Povolzhye LLC, submits annual financial statements no later than April 1 following the reporting year, and quarterly financial statements - before the 10th next month at the end of the period.
Based on the order of the higher organization of the Branch of LLC "RGS-Povolzhye" - "Management for the Ulyanovsk Region", an audit of financial transactions, accounting and reporting is carried out in the Insurance Department of the city of Barysh. The audit allows you to collect a sufficient amount of audit evidence to assess the completeness, reliability and correctness of the calculation of financial reporting indicators. The sources of information are the accounting reporting forms used by the insurance company: order journals No. 1 - No. 5, turnover sheets, General Ledger, primary documents, balance sheet.
The audit is carried out for each form of financial statements separately by comparing the indicators contained in the corresponding form with the balances and turnover of the general ledger accounts. If the indicators contained in the reporting forms cannot be verified against the general ledger data, the auditor must use the appropriate registers analytical accounting.
During the audit, the auditor must ensure that the following conditions were met when preparing the financial statements of the Barysh Insurance Department:
Full reflection of all business transactions and inventory results for the reporting period;
Complete coincidence of synthetic and analytical accounting data, as well as compliance of report and balance sheet indicators with synthetic and analytical accounting data;
Recording business transactions in accounting
Only on the basis of properly executed supporting documents;
Correct assessment of balance sheet items.
When conducting an audit of financial statements, the auditor is obliged to establish the compliance of the financial and business operations of the Insurance Department of the city of Barysh with those in force in the Russian Federation regulations, to obtain sufficient confidence that this reporting does not contain material misstatements.
When drawing up the audit report, the auditor takes into account all material circumstances established as a result of the audit of the financial statements of the Insurance Department of Rosgosstrakh-Povolzhye LLC.
In accordance with Federal Law of the Russian Federation No. 129-FZ dated November 21, 1996 “On Accounting”, the auditor must take into account the following provisions when checking the correctness of reporting:
The chief accountant ensures compliance of ongoing business operations with the legislation of the Russian Federation, control over the movement of property and the fulfillment of obligations. Without the signature of the chief accountant, cash and settlement documents, financial and credit obligations are considered invalid and should not be accepted for execution.
To control and streamline the processing of data on business transactions based on primary accounting documents, consolidated accounting documents.
Primary and consolidated accounting documents can be compiled on paper and computer media.
The organization's financial reporting forms, as well as instructions on the procedure for filling them out, are approved by the Ministry of Finance of the Russian Federation.
Accounting statements must give a reliable and complete picture of the property and financial situation organization, its changes, as well as the financial results of its activities.
Monthly and quarterly reports are interim and are compiled on an accrual basis from the beginning of the reporting year.
The organization is obliged to store primary accounting documents, accounting registers and financial statements for at least 5 years.
Accounting statements are signed by the head and chief accountant of the organization.
When identifying distortions in financial statements audit organization must assess how effective the economic entity’s system is internal control prevents the occurrence of various violations leading to distortions in financial statements.
The main errors, comments and violations noted in the work of the insurance organization Rosgosstrakh-Povolzhye LLC are shown in Table 3.1.
Table 3.1 - Common mistakes, comments and violations noted in the work
insurance organization LLC "Rosgosstrakh-Povolzhye"
Errors, violations | Ways to resolve errors |
|
1.Payment of commission was carried out in an amount exceeding the amount provided for by the structure of the tariff rate. Payment of commissions for concluding one contract is made to a number of employees (from the director of the branch to the employee who entered into the contract) without reflecting the possibility of such payments in employment contracts employees, without concluding relevant civil law contracts with employees. | Overestimation of costs associated with production and sales in terms of unreasonably paid commissions. In case of excess of the commission fee to one agent (broker) for the provision of identical services over other agents tax authorities may apply Article 40 of the Tax Code of the Russian Federation and recognize such pricing for agent services as economically unjustified. | Comply with the structure of tariff rates agreed with the Ministry of Finance of the Russian Federation. |
3. Full-time employees are paid a commission in the absence of agency agreements concluded with them. | Design agency agreements(or agency agreements) for the payment of commissions to full-time employees. |
|
Continuation of Table 3.1 |
||
Errors, violations | Requirements of which regulatory documents were violated | Ways to resolve errors |
4. Write-off of gasoline expenses based on travel sheets drawn up for several days and without indicating a specific travel route. | Understatement of the tax base for income tax. | Prepare waybills for each day indicating travel routes. |
5. Systematically organized storage of documents is not organized. (business contracts are stored in different departments or filed in order journals No. 1, No. 2, which are not intended for these purposes). | Risk of loss of documents. | Organize and systematize the storage and archiving of documents. Assign responsible persons for organizing document flow. |
7. Manual accounting if computers and software are available. | Increased risk of accounting error. | Ensure automation of accounting if equipment and accounting programs are available. |
8. Unified forms of primary documents approved by the legislation of the Russian Federation are not used. For example, primary documents for payroll accounting. | Non-recognition by tax authorities of expenses documented in primary documents that do not comply with the requirements of the legislation of the Russian Federation. | Use legally approved unified forms of primary documents. |
Continuation of Table 3.1 |
||
Errors, violations | Requirements of which regulatory documents were violated | Ways to resolve errors |
9. There are no primary accounting documents on paper with signatures of the persons responsible for accounting for fixed assets (form No. OS-1, OS-3, OS-4, OS-6). | In the absence of primary documents, operations to account for fixed assets will be considered unjustified for both accounting and tax accounting. | Prepare the specified primary documents in accordance with legal requirements. |
10. Failure to conduct an inventory of assets and liabilities of companies at the end of the year. As a result, there is the presence of undocumented receivables and payables. | Unconfirmed balances on accounting accounts, unreliable financial statements. | At the end of the year, conduct a mandatory inventory of property and liabilities. |
11. Lack of off-system (off-balance sheet) accounting for the acquisition and expenditure of inventory in quantitative and total terms. | Lack of control over material assets | Organize off-system (off-balance sheet) accounting of material assets in quantitative and total terms. |
12. Copies of computer programs purchased after 01/01/2001 were taken into account as part of intangible assets. and for which the societies do not have exclusive copyright. | Distortion of financial statements. | Such expenses should be taken into account in account 97 “Deferred expenses”. |
Continuation of Table 3.1 |
||
Errors, violations | Requirements of which regulatory documents were violated | Ways to resolve errors |
13. Lack of receipts for insurance premiums when paying premiums individuals in cash. Absence of original signatures of the policyholder and the insurer's representative on the receipt for receipt of the insurance premium in the insurer's copy. | In accordance with Article 14.5 of the Code of Administrative Offenses of the Russian Federation, the fine for officials is from thirty to forty minimum wages; for legal entities - from three hundred to four hundred minimum wages. | When making payments to the public, use receipts for receiving the insurance premium, which must contain the original signatures of the policyholder and the insurer's representative. |
14. Issuing accountable amounts if there is a balance on previously issued accountable amounts. When dismissing employees, calculations for accountable amounts were not made. | Fines and penalties for failure to withhold personal income tax. | Conduct an inventory of balances on accountable amounts. When dismissing employees, do not allow them to be in arrears on accountable amounts. |
15. Lack of invoice registers, purchase books and sales books. | Fine in accordance with Article 126 of the Tax Code of the Russian Federation. | Maintain the specified tax registers. |
The financial statements after the audit for the 2nd quarter of 2005 correspond to the accounting data and are presented in a timely manner. Insurance department
Barysha LLC "Rosgosstrakh-Povolzhye" operates on the basis of the Regulations on the department and has a balance sheet with an unfinished financial result.
The results of the audit are summarized in the auditor's working document, which is prepared separately for each of the audited accounts.
Conclusion
Insurance is associated with risk prevention and compensation for losses, which is made in cash, therefore insurance is classified as finance. Like finance, insurance belongs to the sphere of distribution, but is used at all stages of reproduction. The economic essence of insurance is that the loss of one policyholder is distributed and covered by the funds of all policyholders.
As a type of activity, insurance is based on the accumulation of a monetary fund to cover damage caused by accidental circumstances. Insurance develops the idea of collective savings: if an individual’s savings can cover only partially the damage incurred, then insurance activities form a collective savings fund that can fully cover any damage incurred by one of the insureds (participants in its formation for a short period of time before the occurrence of an accident).
Financial and economic content of the activities of the Insurance Department
Barysha LLC "Rosgosstrakh-Povolzhye" manifests itself in certain forms:
1) formation of a specialized insurance fund of funds;
2) compensation for damage and personal financial support of insurance participants;
3) prevention of an insured event and reduction of the amount incurred
loss from a natural disaster or accident.
The level of development of insurance activities in the region, namely in the Ulyanovsk region, depends on the degree of economic development of the region itself.
The accounting of the Insurance Department of the city of Barysh reflects the specifics of insurance activities, which consist in receiving insurance premiums, forming insurance reserves and making insurance payments upon the occurrence of insured events. Insurance premiums are the source of primary income for the insurance department, a source of financing investment activities, and the size of insurance reserves depends on their volume.
Insurance payments are made by the insurance organization upon the occurrence of an insured event. Insurance payments under insurance contracts are one of the main types of expenses of an insurance organization.
To ensure their obligations, insurers form insurance reserves necessary for future payments from the insurance premiums received. Insurance reserves are the funds of policyholders and are intended for insurance payments in accordance with obligations under insurance contracts that are not completed at the reporting date. The amount of insurance reserves must fully cover the amount of upcoming payments for existing agreements insurance.
The basis for the financial stability of insurers is the presence of their paid authorized capital and insurance reserves.
The chart of accounts of an insurance organization reflects all the features of accounting for insurance activities: from accounting for the receipt of insurance premiums under insurance contracts, to the formation and accounting of insurance reserves and the determination of financial results.
Features of individual forms of accounting are characterized by methods and techniques of accounting registration, the nature of the chronological relationship and the accounting system, analytical and synthetic accounting, methods of storing, searching and summarizing accounting data using computer technology in order to obtain the final indicators in the activities of the enterprise necessary for making management decisions . Based on the data from the accounting registers, the enterprise's reporting is compiled.
The accounting form is chosen by the Insurance Department of the city of Barysh, Rosgosstrakh-Povolzhye LLC, independently and does not change during the reporting period. Accounting in the Insurance Department is carried out using computer technology for processing accounting information in combination with traditional (manual) forms of accounting in a journal-order form.
The main principle of organizing the work of an insurance agent is to encourage actions aimed at increasing the volume of incoming insurance premiums and qualitatively improving the structure of the portfolio. The agency fee is paid for performing a set of works to conclude insurance contracts and receive an insurance premium.
Settlements with various debtors and creditors of an insurance company arise for various reasons: claims against guilty parties for compensation of material damage, property and personnel insurance, etc.
Preparation of financial statements of the Insurance Department is the final stage of the accounting process, which reflects the property and financial position of the organization, the results of financial and economic activities for the reporting period. When preparing financial statements you must:
Compliance during the reporting period with the adopted accounting policy for reflecting business transactions;
Reliable and complete presentation of information about the property and financial position of the organization, as well as the financial results of its activities;
Based on data from unified forms of primary accounting documentation of synthetic and analytical accounting;
So that the data in the opening balance sheet corresponds to the indicators of the approved closing balance sheet for the period preceding the reporting period;
Signature by the head and chief accountant of the organization.
In order to ensure the reliability of accounting and reporting data, an inventory is carried out. The audit is carried out for each form of financial statements separately by comparing the indicators contained in the corresponding form with the balances and turnover of the general ledger accounts. Annual financial statements are subject to independent audit and is submitted to the Directorate along with the audit report.
List of sources used
1. Civil Code RF. Parts I and II.-M.: Prospect, 1998.
2. “About accounting.” Federal Law of November 21, 1996 No. 129-FZ.
3. tax code RF. Part 1. Federal Law of July 31, 1998 No. 146-FZ.
4. Tax Code of the Russian Federation. Part 2. Federal Law of 05.08.2000 No. 117-FZ.
6. Chart of accounts for accounting of financial and economic activities of the organization and Instructions for its application. Approved by order of the Ministry of Finance of the Russian Federation dated October 31, 2000 No. 94n.
7. Regulations on accounting and financial reporting in the Russian Federation. Approved by order of the Ministry of Finance of the Russian Federation dated July 29, 1998 No. 34n.
8. Accounting Regulations “Accounting Statements of an Organization” - PBU 4/99. Approved by order of the Ministry of Finance of the Russian Federation dated July 6, 1999. No. 43n.
9. Accounting Regulations “Accounting Policy of the Organization” - PBU 1/98. Approved by order of the Ministry of Finance of the Russian Federation dated December 9, 1998 No. 60n.
10. Accounting policy of Rosgosstrakh-Povolzhye LLC for 2005 dated December 31, 2004. Protocol No. SD-153.
11. Accounting regulations “Income of the organization” - PBU 9/99. Approved by order of the Ministry of Finance of the Russian Federation dated 05/06/99. No. 32n.
12. Accounting Regulations “Expenses of the Organization” - PBU 10/99. Approved by order of the Ministry of Finance of the Russian Federation dated 05/06/99. No. 33n.
13. “On the forms of financial statements of an organization” order of the Ministry of Finance of the Russian Federation dated July 22, 2003 No. 67-n.
14. Forms of financial statements, Instructions on the scope of forms of financial statements and Instructions on the procedure for drawing up and submitting financial statements dated January 13, 2000 No. 4n.
15. “On the procedure for submitting financial statements of an organization” Letter of the Ministry of Finance of the Russian Federation dated September 29, 2003 No. 16-0077/31.
16. Instruction B No. 18 dated October 4, 1993 “Procedure for conducting cash transactions in the Russian Federation.”
17. Guidelines for inventory of property and financial obligations. Approved by order of the Ministry of Finance of the Russian Federation dated June 13, 1995. No. 49.
18. Analysis of the economic activities of an enterprise: Textbook /
G.V. Savitskaya. - 7th ed., revised. - Minsk: New edition, 2002.
19. Audit. Series “Higher Education”. - I.N. Bogataya, N.N. Khakhonova. - Rostov-on-Don: Phoenix, 2003.
20. Audit: Textbook for universities / V.I. Podolsky, G.B. Polyak, A.A. Savin - 2nd ed., revised. and additional - M.: UNITY-DANA, 2000.- 655 p.
21. Veshchunova N.L., Fomina L.F. Accounting in insurance companies: practical work. allowance. - M.: INFRA-M, 1996.
22. Accounting: Textbook / Ed. P.S. Armless.-4th ed., revised. and additional – M.: Accounting, 2002.
23. Accounting: Textbook for universities / Under. ed. prof. Yu.A. Babaeva.-M.: UNITY-DANA, 2002.
24. Kondrakov N.P. Accounting: Textbook.-5th ed., revised. and additional - M.: INFRA-M, 2005.-717p.
25. Accounting in organizations / E.P. Kozlova, T.N. Babchenko, E.N. Galanina. - 3rd ed., revised. and additional - M.: Finance and Statistics, 2003.
26. L.G. Polupan Educational and practical manual on the discipline Accounting. - Buzuluk: BGTI, 2001.
27. International financial reporting standards. Russian edition.-M.: Askeri, 1998.
28. Needles B., Anderson H., Caldwell D. Principles of accounting: Transl. from English/Ed. I'M IN. Sokolova. - M.: Finance and Statistics, 1993.
29. Paliy V.F. Modern accounting. -M.: Accounting, 2003.
30. Management accounting: Textbook. allowance / Under. ed. HELL. Sheremet. – 2nd ed., rev. – M.: ID FBK-PRESS, 2001.
Tutoring
Need help studying a topic?
Our specialists will advise or provide tutoring services on topics that interest you.
Submit your application indicating the topic right now to find out about the possibility of obtaining a consultation.
Nesterenko Anna Vadimovna
3rd year student, Department of Economics, Finance and Management, PSU,
Penza
Akimov Andrey Alexandrovich
scientific supervisor, Ph.D. econ. Sciences, Associate Professor PSU, Penza
Accounting in the Russian Federation at the present stage of economic reform is increasingly being transformed and adapted to international accounting and reporting standards. Using the capabilities of accounting (in other words, financial) and tax accounting, you can significantly change ongoing business processes, influence the decisions of managers, the results of activities, and the degree of attraction of funds to the organization. In addition to compulsory insurance, policyholders are increasingly entering into insurance contracts on a voluntary basis. The financial activities of insurers are associated with a very large number of individuals. That is why awareness of the features of accounting and financial analysis insurance organizations is relevant at the moment. The insurance business is very different from other types of business, first of all, in that the results affect not only the interests of the insurer, but also a certain circle of policyholders. Insurance activities are aimed at protecting the property interests of individuals and legal entities upon the occurrence of certain events. The interests of insured legal entities or individuals are restored at the expense of funds replenished by policyholders through insurance premiums. Considering the above, it seems relevant and useful to study the features of accounting of insurance organizations and identify problems and unresolved issues in this aspect.
This work will identify the features of the activities of insurance companies and describe the main differences between insurance and other types of economic activities; insurance contracts as accounting objects were studied; insurance operations and closely related ones have been studied; the main accounting objects are considered; the accounting system functioning today is considered; problems and omissions in the legislation regulating the accounting of insurance organizations were identified.
The accounting policy of the insurance company is formed in accordance with the Accounting Regulations “Accounting Policy of the Organization” PBU 1/2008 (approved by order of the Ministry of Finance of the Russian Federation dated October 6, 2008 No. 106n). Its content is similar to the accounting policies of all other organizations, but it should be noted that the specifics of insurance also determine other aspects of the accounting policies. For example, it provides for the choice of method for determining “insurance proceeds” (i.e., proceeds received by the insurer). When choosing it as a tax base for some taxes, it is possible to use either the “accrual” method (accounting for the receipt of insurance payments upon the conclusion of an agreement) or the “cash” method (i.e., upon the fact of crediting funds to an account or cash desk).
A problematic issue is the determination of the accounting policy by the reinsurer, i.e. an insurance company that accepts risks for reinsurance. Reinsurance is a set of economic legal relations, in accordance with them, the insurer accepts risks for insurance and transfers part of the responsibility to other insurers (reinsurers) on terms agreed with them. Such activities create a balanced insurance portfolio. The main task is to increase the capacity of the insurance market and provide more opportunities to insurers.
Reinsurance transactions are always accounted for using the accrual method, because The chart of accounts for insurance organizations does not provide for accounting for such transactions using the “cash” method. When conducting accounting, insurance companies use the same Chart of Accounts as other organizations.
In addition to the above, another feature of accounting by insurance companies is that they do not use PBU 18/02.
Asset items represent the insurer's investments, namely: investments, fixed assets, cash, intangible assets and accounts receivable. The specificity of insurance is also manifested in the composition of the items on the active part of the balance sheet (the share of reinsurers in insurance reserves, accounts receivable for operations performed, etc.) If an organization pursues an active investment policy, then the predominant part of its assets will include financial investments in securities, including dependent companies and other organizations, bank deposits, real estate, etc.
In the liability side of the balance sheet, the element that is influenced by the specifics of the industry is the section “Insurance reserves”. It is customary to include funds that have been set aside in reserve for the fulfillment of future obligations of the organization to insured legal entities or individuals. With a significant, periodically increasing and quite profitable insurance portfolio, this section is the most extensive. Insurance reserves and equity can be regarded as the most significant sources of financing the investment-related activities of an insurance organization.
Data in primary accounting documents must be systematized in accounting registers, transactions in them must be reflected in chronological order, the list of relevant accounts is indicated in the Chart of Accounts for accounting the activities of insurance companies.
Currently, insurance companies use the Chart of Accounts for accounting the financial and economic activities of organizations and the Instructions for its application (approved by Order of the Ministry of Finance on October 31, 2000 N 94n).
According to the order of the Ministry of Finance dated September 4, 2001 No. 69n, insurance organizations use special accounts that reflect the specifics of insurance. These accounts include account 22 “Payments under insurance, coinsurance and reinsurance agreements”, 77 “Calculations for insurance, coinsurance and reinsurance”, 92 “Insurance premiums (contributions)” and 95 “Insurance reserves”.
Account 22 “Payments under insurance, co-insurance and reinsurance contracts” summarizes data on insurance payments for the reporting period in connection with the occurrence of an insured event, reinsurers’ shares in insurance payments under contracts transferred to reinsurance, returned insurance premiums, paid redemption amounts, paid medical services. Analytical accounting by this account conducted by type of insurance, policyholders, reinsurers and other areas necessary for management and reporting.
Account 26 “General business expenses” is used to summarize data on expenses associated with concluding contracts and other expenses associated with carrying out operations in insurance, reinsurance and managing an insurance company. At the end of the reporting period, the debit balance of account 26 is written off to the debit of account 99 “Profits and losses”. Analytical accounting is carried out in the context of costs associated with concluding insurance, co-insurance and reinsurance contracts, making insurance payments and in other areas, without which management and reporting are impossible.
Account 77 “Settlements for insurance, coinsurance and reinsurance” is necessary to organize data on the organization’s settlements with policyholders, reinsurers, insurance agents and brokers under concluded insurance, coinsurance, reinsurance contracts, with territorial compulsory health insurance funds for insurance payments. Analytical accounting is carried out by type of insurance, policyholders, reinsurers, reinsurers, insurance brokers and agents, territorial compulsory health insurance funds and other areas provided for management and reporting.
Account 91 “Other income and expenses” is used to organize information about other income and expenses (investment, operating, non-operating), in addition to emergency ones. The credit of account 91 reflects the interest received by the reinsurer on deposited premiums; remuneration and bonuses received from the reinsurer; receipts from the provision of various types of services to other insurance companies; receipts from the issuance of duplicate insurance policies for compulsory health insurance; receipts after reimbursement of expenses for providing the insured person with medical care from persons responsible for the harm they caused, etc.
The debit of account 91 reflects the interest paid to the reinsurer on deposited premiums; expenses for the provision of various types of services to other insurance organizations; expenses for exercising the transferred right of claim that the policyholder has against the person responsible for losses compensated as a result of insurance; expenses related to investment management, etc.
Account 92 “Insurance premiums (contributions)” summarizes data on accrued insurance premiums (contributions) under insurance, co-insurance and reinsurance contracts, on insurance payments due from the territorial compulsory health insurance fund for compulsory health insurance, incl. subventions. Analytical accounting is carried out by type of insurance, in the context of reinsurance contracts and in other necessary areas.
Account 95 “Insurance reserves” is provided to organize data on insurance reserves formed by an insurance company that complies with the law. Information on the share of reinsurers and the consequences of changes in insurance reserves is also taken into account. Insurance medical organizations Those who carry out compulsory health insurance on this account summarize data on the state and movement of reserves for compulsory health insurance.
Insurance reserves are calculated at the end of each reporting period at the time of reporting. In order to create reserves, contracts are divided into accounting groups. Reserves are calculated for each group separately. The size of the reserve is determined by adding the amounts of reserves for all accounting groups.
At the end of the reporting period, the balances formed in the subaccounts for recording the results of changes in reserves for compulsory health insurance are written off to the debit or credit of account 99 “Profits and losses”.
Account 96 “Reserves” upcoming expenses» summarizes the amounts of deductions from insurance premiums intended for measures to prevent accidents, loss or damage to insured property. The amounts of deductions from insurance premiums for such events should be taken into account on account 96, subaccount “Reserve for Preventive Measures”, in correspondence with the debit of account 99 “Profits and Losses”.
On account 99 “Profits and losses”, organizations must reflect:
- balance of insurance premiums (contributions) – in correspondence with account 92 “Insurance premiums (contributions)”;
- balance of insurance payments – in correspondence with account 22 “Payments under insurance, co-insurance and reinsurance contracts”;
- the balance of changes in insurance reserves and the share of reinsurers in reserves - in correspondence with account 95 “Insurance reserves”;
- deductions for prevention measures from insurance premiums (contributions) - in correspondence with account 96 “Reserves for future expenses”, subaccount “Reserve for preventive measures”;
- expenses upon concluding contracts, other expenses associated with carrying out operations on insurance, reinsurance, and company management - in correspondence with account 26 “General business expenses”;
- balance of other income and expenses – in correspondence with account 91 “Other income and expenses”;
- accrued income tax payments, payments for recalculations from actual profits, the amount of tax penalties due - in correspondence with account 68 “Calculations for taxes and fees”.
When using the correspondence scheme of account 99 “Profits and losses”, you need to keep in mind that the following accounts are debited: 22 “Payments under insurance, coinsurance and reinsurance contracts”, 92 “Insurance premiums (contributions)”, 95 “Insurance reserves”, 96 “Reserves for future expenses”, on credit - accounts 22 “Payments under insurance, coinsurance and reinsurance contracts”, 92 “Insurance premiums (contributions)”, 95 “Insurance reserves”.
Insurance organizations are required to maintain analytical records for all types of insurance, policyholders, insurance contracts, contracts with medical institutions, insured events, etc. Annual and interim financial statements are submitted to the tax authorities, the Federal Insurance Supervision Service and its territorial bodies. Insurance organizations must take into account income and expenses under insurance, coinsurance and reinsurance contracts separately
So, one of the most significant characteristics of accounting by insurance companies is that they do not use PBU 18/02. The chart of accounts for the financial and economic activities of insurance organizations differs from the chart of accounts of all other companies. It does not contain accounts for accounting for costs in the production process, distribution costs, finished products, goods, sales of products, etc. This is due to the fact that the subject of direct activity of insurance organizations cannot be trade, intermediary and production activities.
Improvement legal regulation accounting of insurance transactions took place almost simultaneously with the transformations in our state. This had a negative impact on the regulatory system and made it difficult to monitor changes in it, their reasons and benefits. The formation of a modern model for accounting for insurance transactions originated during the development market economy in our country, however, the roots grow from the accounting system of Soviet insurance authorities. The result is a rather unusual model. On the one hand, it satisfies commercial insurance, but on the other, it is very different from foreign models, and not always in a positive way.
The current Additions and features of the use of the Chart of Accounts by insurance organizations and Instruction No. 69n contain many shortcomings and sometimes do not correspond to the modern insurance market.
Firstly, the disadvantage of Instruction No. 69n is that it contains many gaps in the legal regulation for the recognition of income and expenses under contracts. This can be attributed to the lack of PBU “Income and expenses under insurance contracts”. The instructions contain clear instructions on the recognition of insurance premiums under contracts as part of income, describing only the correspondence of accounts for transactions for making insurance payments; in fact, it establishes the “cash method” of accounting for insurance payments. The content of Instruction No. 69n does not correspond to the content of the documents that it supplements.
The chart of accounts and instructions for its use establish only general order reflection of economic facts on accounts. The Plan contains general approach to build a system of accounts. In the Instructions, you can only find a very compressed description of synthetic accounts, which indicates the composition and purpose of using the accounts, the economic content of the reflected transactions, the order of recording facts, and correspondence with other accounts. However, neither the Chart of Accounts nor the Instructions contain general and clear rules for assessment, grouping, documentation, and generalization in the balance sheet. All this falls within the competence of other components of the regulatory system and significantly complicates the work of accountants.
Studying the Instructions, one cannot help but note that it reflects certain gaps in the legal regulation of insurance operations, i.e. This document contains guidance that goes beyond the boundaries of the original documents.
Secondly, the shortcoming of the Instructions, in my opinion, is that from the very beginning it was a mistake to give insurers the right to independently interpret the general business Chart of Accounts, introducing only four additional accounts into it. It can be noted that the introduction of additional accounts into the Chart of Accounts for the purpose of uniformity of other operations of insurance organizations with general business accounting was implemented, having a negative impact on insurance accounting. It can also be considered insufficiently correct that the insurer (even taking into account that the organization can use specific accounts) has sections “Production inventories”, “Production costs”, “ Finished products and goods."
Thirdly, the content of the Instruction does not correspond to the current state of the market and the types of transactions that take place on it. This is due to the fact that many years have passed since the adoption of this document, during which a large number of regulations changing operations were adopted.
Consequently, the clarification of insurance operations provided for in the Instructions on subaccounts can only be regarded as recommended. Subaccounts can be renamed, merged, or removed as desired. It is logical to propose excluding the right of policyholders to clarify the content, exclude and combine subaccounts, leaving them with the opportunity only to enter them. It makes sense to eliminate the reversal of records and commissions to insurance intermediaries. The red reversal correction method is not used in International Financial Reporting Standards (IFRS). An organization is prohibited from using this method if it makes an entry in one reporting period, and needs to make a correction in another. This, of course, only applies to erroneous entries whose correspondence involves temporary accounts, which at the end of the reporting period are written off to the profit and loss account without a closing balance. The use of a “red reversal” will in this case lead to a decrease in turnover for operations of the current period, and this should not be allowed.
It is necessary to replace active-passive subaccounts with purely active or passive ones, which has already been implemented in the accounting of banking organizations. For example, subaccount 22-5 “Return of insurance premiums and redemption amounts”, in which the insurer’s expenses are reflected as a debit and income as a credit, it is advisable to divide it into 22-5 “Return of insurance premiums and redemption amounts” (expenses are taken into account) and 22 -6 “Return of insurance premiums from reinsurers” (income is taken into account).
Initially, Instruction No. 69n did not provide a clear explanation of unresolved issues regarding the recording of certain transactions in accounts, for example, the replacement of insurance payment with the provision of property; operations when an insurance payment previously made by the insurer is returned; operations when the insurer makes a payment in court.
From all this it follows that the Instruction clearly does not correspond to modern conditions and must be carefully revised and corrected, taking into account existing as well as future changes.
There is also a tangible need to adopt PBU “Income and expenses under insurance contracts.”
So, the reasonable and meaningful implementation of these comments on improving the existing accounting system of insurance organizations in our state can create a very favorable conditions for the transition to IFRS.
Bibliography:
- Abramov V.Yu. Reinsurance as a type of insurance. Features of concluding reinsurance contracts // Legal and legal work in insurance. – 2011.– No. 3. - [Electronic resource] - Access mode: http://base.garant.ru/5237066/ (date of access – 04/2/2012).
- Veshchunova N.L., Fomina L.F. Accounting in insurance companies: Educational and practical manual. - St. Petersburg: Gerda, 2006.- [Electronic resource] - Access mode: http://www.twirpx.com/file/447864/ (date of access - 03/30/2012).
- Dubrovina T.A. Accounting in insurance organizations: A textbook for university students studying economics. specialties - M.: Unity, 2000. - 543 pp.; With. 201.
- Klimova M.A. Insurance: Textbook. – M.: MGUP., 2009. - [Electronic resource] - Access mode: http://books.kb200.com/book.php?id=24118772 / (date of access - 03/30/2012).
- Kondrakov N.P. Accounting. - M.: Infra - M, 2007. - 592 pp.; With. 116, p. 235.
- Krasova O.S. Accounting in insurance.- M.: Omega-L, 2009.-160 pp.; With. 65, p. 161.
- Order of the Ministry of Finance of the Russian Federation dated 04.09.2001 N69n (as amended on 25.11.2011) “On the peculiarities of the use by insurance organizations of the Chart of Accounts for accounting of financial and economic activities of organizations and Instructions for its application.”// Fin. Newspaper. – 2001.- No. 45. - [Electronic resource] - Access mode: http://www.consultant.ru/online/base/?req=doc;base=LAW;n=124268 (date of access - 03/28/2012).
- Order of the Ministry of Finance of the Russian Federation dated October 31, 2000 N94n (as amended on November 8, 2010) “On approval of the Chart of Accounts for accounting of financial and economic activities of organizations and Instructions for its application.”//Fin. newspaper.-2000.- No. 46.
- Romanova M.V. Features of accounting of insurance organizations. // Russian tax courier. – 2010. - No. 22. - [Electronic resource] - Access mode: http://www.rnk.ru/journal/archives/2002/15/nalog_na_pribyl/104745.phtml5 (date of access - 04/3/2012).
- Federal Law of the Russian Federation dated November 27, 1992 N 4015-1 (as amended on January 1, 2012) “On the organization of insurance business in the Russian Federation.” // Russian newspaper. – 1993. - №6.
- Procedure for issuing a Sberbank plastic card What is needed to obtain a Sberbank card
- Sberbank VISA cards: overview of conditions and advantages Applying for a card at Sberbank
- How to return funds to the account if it is established that an unauthorized debit of funds from a bank card?
- How and where can you exchange damaged banknotes?