Financial Position and Performance in IFRS 17

Lindholm, Mathias; Lindskog, Filip; Palmborg, Lina

doi:10.2139/ssrn.3567745

Cited by 4 publications

(3 citation statements)

References 13 publications

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“…Financial performance refers to an increase in the economic activity of a company as measured by profit or loss over a certain period (Lindholm et al, 2020;Ofoegbu and Corruption in state-owned companies Odoemelam, 2018). Furthermore, that financial performance is a company's financial achievement.…”

Section: Financial Performancementioning

confidence: 99%

When internal organizational factors improve detecting corruption in state-owned companies

Siahaan

Suharman²,

Fitrijanti³

et al. 2023

JFC

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Purpose The phenomenon of corruption requires extra handling to achieve zero corruption. The purpose of this paper is to examine the integrated governance, risk management and compliance (GRC) implementation, the quality of internal audits and management's commitment to improving the ability to detect corruption and its impact on the company's financial performance. Design/methodology/approach This paper used primary and secondary data. Financial statement data and survey results from participants in 69 state-owned companies were analyzed using the Partial Least Square method. Findings There was a positive and significant effect of the integrated GRC implementation, quality of internal audit and management's commitment to increasing the organization's internal capability in detecting corruption. However, the failure to detect corruption mediates the effect of management commitment on financial performance. Besides, the organization's three internal factors could be better because their functions could be more optimal and require further improvement. Research limitations/implications State-owned companies are continuing to be restructured, so these results can be helpful for now. However, they must update continuously with developments related to the composition and classification of state-owned companies. Practical implications Organizations can improve their ability to detect corruption in the workplace by using an early warning system such as the integrated GRC, internal audit quality and a high commitment from management. Originality/value To the author's limited knowledge, empirical research on integrated GRC implementation, internal audit quality and management commitment are still rare if they improve the detection of corruption ability. It uses the factors that cause corruption in the fraud hexagon to analyze the financial performance.

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Section: Financial Performancementioning

confidence: 99%

When internal organizational factors improve detecting corruption in state-owned companies

Siahaan

Suharman²,

Fitrijanti³

et al. 2023

JFC

View full text Add to dashboard Cite

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“…The last part of the new income statement puzzle in the insurance accounting world is the presentation of income or expense resulting from insurance finance activities. Insurance finance income or expense is excluded from insurance service results and presented in two ways: (1) as part of net income or (2) as part of net income and other comprehensive income (OCI) as well, depending on the firm's accounting policy (EY, 2021;Lindholm et al, 2020). As in the JASINDO case, once selected, the company's accounting policy will require to be implemented consistently at the insurance contracts level.…”

Section: Presentation Of Income Statements: Hailing the [King] Csmmentioning

confidence: 99%

“…The standard unifies the values of premium receivable, policy loan, and deferred acquisition cost into a single contract asset account (Dahiyat & Owais, 2021;KPMG, 2020). The most problematic issue in presenting the insurance asset under PSAK 74 is that the insurer, or in this case, JASINDO, has to put in a lot of effort to collect the insurance premium that has not yet been resolved and is recorded as premium receivable (Lindholm et al, 2020;PWC, 2020). If the company fails to collect the receivables, the firm's actuary must revise the CSM assumption toward the ongoing contract.…”

Section: Descriptionmentioning

confidence: 99%

Contextualizing the Universe of PSAK 74 [IFRS 17] in Indonesia and Insurance Industry Vigilance Through the Cosmology of “Yoga Kshema”

Qadri

Sari

Andriani

et al. 2022

JASF

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This research aims to answer two main questions about the impacts of implementing IFRS 17 on the insurance industry in Indonesia, and the readiness of the industry to implement the latest insurance accounting standard. This study employed the qualitative research inquiry using an interpretive paradigm. The data in this study were sourced from the results of an extensive literature study to synthesize knowledge related to the implementation of IFRS 17 in Indonesia. Several interviews were conducted with academics and insurance practitioners to validate the knowledge. The collected data were analyzed by utilizing the case study analysis procedure. The results of the analysis are used to be conceptually implemented in one of the leading insurance companies in Indonesia. This study concludes that the insurance sector in Indonesia has experienced a major obstacle related to the competence of accountants during the preparation of IFRS 17 implementation. In addition, a major overhaul of the company's accounting information system is necessary to meet all the IFRS 17 requirements. This research contributes to providing insightful knowledge for the Indonesian insurance industry regarding crucial changes in the company's financial reporting system as a result of IFRS 17 implementation.

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Financial position and performance in IFRS 17

Palmborg

Lindholm

Lindskog

2020

Scandinavian Actuarial Journal

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The general principles for determining the financial performance of a company is that revenue is earned as goods are delivered or services provided, and that expenses in the period are made up of the costs associated with this earned revenue. In the insurance industry, premium payments are typically made upfront, and can provide coverage for several years, or be paid many years before the coverage period starts. The associated costs are often not fully known until many years later. Hence, complexity arises both in determining how a premium paid should be earned over time, and in valuing the costs associated with this earned premium. IFRS 17 attempts to align the insurance industry with these general accounting principles. We bring this new accounting standard into the realm of actuarial science, through a mathematical interpretation of the regulatory texts, and by defining the algorithm for profit or loss in accordance with the new standard. Furthermore, we suggest a computationally efficient risk-based method of valuing a portfolio of insurance contracts and an allocation of this value to subportfolios. Finally, we demonstrate the practicability of these methods and the algorithm for profit or loss in a large-scale numerical example.

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Financial Position and Performance in IFRS 17

Cited by 4 publications

References 13 publications

When internal organizational factors improve detecting corruption in state-owned companies

When internal organizational factors improve detecting corruption in state-owned companies

Contextualizing the Universe of PSAK 74 [IFRS 17] in Indonesia and Insurance Industry Vigilance Through the Cosmology of “Yoga Kshema”

Financial position and performance in IFRS 17

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