Analysis highlights how the new revenue standard impacts accounting for insurance contracts, suggesting improvements to internal controls.
The implementation of the new revenue standard has a far-reaching impact on the accounting treatment of insurance enterprises, and the application of contract settlement accounts, as the key to connect business and financial accounting, needs to be standardized. This paper analyzes the core requirements of the new revenue standard, combines the special characteristics of insurance contracts with both service and financial attributes, and explains the logic of setting up and accounting methods of secondary accounts, such as insurance service income and investment component apportionment. In view of the practical pain points such as variable consideration apportionment and reclassification of inter-period contracts, the paper proposes strategies for system upgrading and internal control strengthening. The study shows that standardizing the application of accounts can help enterprises implement the requirements of the standard and improve the quality of financial information.
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Ji et al. (2025) studied this question.
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