The basic accounting treatment of insurance companies is the same as that of general industrial and commercial accounting. The subjects and business processes are as follows:

Basic accounting treatment of insurance companies:

1. Insurance business accounting classification and profit and loss settlement methods

1. The company should classify and account for insurance business according to types of insurance.

(1) The business of property insurance companies is divided into: property damage insurance, liability insurance, etc.

(2) The business of life insurance companies is divided into: ordinary life insurance, annuity insurance, accident insurance and health insurance, etc.

(3) The business of reinsurance companies is divided into: ceding insurance business and ceding insurance business.

2. Recognition and measurement of premium income

1. Premium income shall be recognized when the following conditions are met:

(1) The insurance contract is established and corresponding insurance liabilities are assumed;

(2) Economic benefits related to the insurance contract Can flow into the company;

(3) The income related to the insurance contract can be measured reliably.

2. Premium income is determined based on the amount that should be charged to the policy holder as stipulated in the insurance contract.

3. Accounting of insurance reserves

1. The reserve for outstanding claims refers to the reserve for outstanding claims that the company has deposited in accordance with regulations because an insurance accident has occurred and insurance compensation has been filed, or an insurance accident has occurred but insurance compensation has not been filed.

The outstanding compensation reserve is withdrawn at the end of the period, and the withdrawal amount of the previous period is reversed and included in the current profit and loss. Outstanding claims reserves that have not yet been reversed should be presented separately in the balance sheet as current liabilities.

2. The unexpired liability reserve refers to the amount that the company withdraws from the unexpired liability portion of the premium income of the current period at the end of the accounting period for property insurance, accidental injury insurance and health insurance business within one year (including one year) in accordance with regulations. , to prepare reserves for compensation in the next year.

The unexpired liability reserves are withdrawn at the end of the period, and the amount withdrawn from the same period last year is reversed and included in the current profit and loss. Reserves for unearned liabilities should be presented separately on the balance sheet as current liabilities.

IV. Foreign currency business accounting

1. Companies with foreign currency business can adopt the accounting method of foreign exchange separate accounting system or the accounting method of unified foreign exchange accounting system.

2. Companies that adopt the foreign exchange separate accounting system should set up a "currency exchange" account. The exchanges between various currencies and the connections with foreign currency accounts are all accounted for through the "Currency Exchange" account.

3. Companies that adopt the foreign exchange unified accounting system should convert the relevant foreign currency amounts into RMB for accounting purposes when conducting foreign currency business.

At the end of the month, the month-end balances in foreign currencies of various foreign currency accounts (including foreign currency cash and claims and debts settled in foreign currencies) should be converted into RMB at the month-end exchange rate.

The difference between the RMB amount converted according to the exchange rate at the end of the month and the original book RMB amount shall be treated as exchange gains and losses, respectively:

(1) Exchange gains and losses incurred during the preparation period shall be calculated as follows:

(2) Exchange gains and losses arising from borrowings related to the purchase and construction of fixed assets shall be included in the cost of the fixed assets under construction before the fixed assets are delivered for use;

(3) Except for the above circumstances, all shall be included in the current profit and loss. Extended information

Accounting treatment, also generally called accounting method, includes accounting confirmation method, accounting measurement method, accounting recording method, and accounting reporting method.

Accounting entries are also called "accounting formulas". Referred to as "entry". It is a record that lists the corresponding accounts of both parties and their amounts for each economic transaction based on the requirements of the double-entry accounting principle.

Insurance companies refer to corporate legal persons established in accordance with the Insurance Law and the Company Law. Insurance companies collect premiums, invest the capital from the premiums in assets such as bonds, stocks, and loans, and use the income from these assets to pay the insurance compensation determined by the policy. Through the above-mentioned businesses, insurance companies can earn high returns on investments and provide customers with appropriate insurance services at lower premiums, thereby making profits.

The business of insurance companies is divided into two categories:?

(1) Personal insurance business, including life insurance, health insurance, accident insurance and other insurance businesses.

(2) Property insurance business, including property damage insurance, liability insurance, credit insurance, guarantee insurance and other insurance businesses. Insurance companies in my country are generally not allowed to engage in personal insurance business and property insurance business concurrently.

An insurance company (insurance company) is an insurer that adopts the form of corporate organization and operates insurance business. The insurer in an insurance relationship has the right to collect insurance premiums and establish insurance premium funds. At the same time, when an insured accident occurs, the insured is obliged to compensate for the economic losses.

An insurance company is a company that sells insurance contracts and provides risk protection. Insurance companies refer to economic organizations that operate the insurance industry. Insurance companies refer to commercial insurance companies established with the approval of the China Insurance Regulatory Authority and registered in accordance with the law, including direct insurance companies and reinsurance companies.

Reference: Baidu Encyclopedia: Accounting Treatment Methods