Newsletter
INSURERS' ACCOUNTING STAN-DARDS TO BE DRAFTED WITHIN TWO YEARS
The Insurance Institute of the ROC states that to cater to the special needs of the insurance in-dustry, it will work with the Accounting Re-search and Development Foundation to develop a set of appropriate financial accounting stan-dards for insurance companies, which it hopes can be announced within two years. Prior to the new standards being announced, the institute will also discuss with insurers whether the provision allowing the cost of policy sales to be amortized over several years should be reinstated, in order to allow insurers to avoid the embarrassing situation of apparent profitability but actual losses, or of booking ever greater losses the higher the sales they achieve.