Document Type : Original Research Paper
Authors
1 Department of Accounting, Faculty of Economic and Administrative Sciences, Mazandaran University, Mazandaran, Iran
2 Department of Economics, Faculty of Economic and Administrative Sciences, Mazandaran University, Mazandaran, Iran
Abstract
Accurate understanding of agency relationships and the rights and interests of insurance industry stakeholders is one of the basic requirements for accurate and fair formulation of accounting regulations and standards. Based on this, the national and international accounting standards authorities have tried to formulate and present appropriate requirements and standards for the financial reporting of this important sector by recognizing and drawing the relationships between insurance industry activists. In 2015, Iran's Standards Development Committee also published Accounting Standard No. 28 for general insurance activities. In this research, the adequacy of accounting standard requirements is evaluated by evaluating the effect of the method of calculating financial elements on the two indicators of "profit" and "financial wealth", which respectively express the interests of insurers and policyholders as the main beneficiaries of the insurance industry. The results of the research show that the accounting standard number 28 under the title of general insurance activities is not sufficient to respect and align the rights of the beneficiaries (insurers and policyholders).
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