SOME CONCEPTUAL PRINCIPLES OF ACCOUNTING RISKS

Abstract

The article states that a characteristic feature of the insurance business is that, on the one hand, insurance is considered one of the methods of risk management, and on the other hand, the insurer, as a market entity, is itself exposed to a number of risks. At the same time, the expected effect of the provision of insurance services is recognized by the business as the satisfaction of the need for security, the confidence factor of the business entity that has entered into insurance relations. This makes it necessary to increase the trust of the accounting and analytical data in terms of its content to the insurance company. Accounting of an insurance company has its own specific subject, which is due to its direct insurance activity. Taking into account the peculiarities of the classification of accounting risks proposed by us, we consider it necessary to supplement this classification in relation to the peculiarities of the activities of insurance companies. It is noted that the accounting of the financial and economic activity of an insurance company assumes the principle of prudence (conservatism), which affects the assessment of balance sheet items and the determination of the amounts of income and expenses of the insurance company. In this case, special attention should be paid to characteristic facts that arose in previous reporting periods, but were accepted for accounting and included in accounting for the reporting period. The essence of the aforementioned transactions can be assessed in future accounting periods, but the full amount of losses cannot be determined when preparing accounting statements. Therefore, when evaluating such consequences when preparing accounting statements, it is necessary to observe a certain caution, which implies the principles of prudence, which in accounting information turns into a factor of uncertainty. As for the latter, it is formed in real conditions in the form of economic facts and is manifested on the date of accounting recognition of income and expenses, in the assessment of assets, when deciding the issue of creating valuation reserves. Taking into account the above, we present the author's vision of the accounting methodology and the inclusion in the accounting statements of insurance companies of possible losses associated with the consequences of accounting risks, which will positively affect the informativeness, reliability of data on the movement of financial reserves, as well as the quality of control over their intended use.