Analysis of Necessity of MCEV-accounting in Life-insurance Companies in Russia

Due to the rapid development of the market of life insurance the question of the solvency of such companies arises. An important step for standardization of reporting of life- insurance companies was the introduction of mandatory statements, prepared in accordance with International Financial Reporting Standards (IFRS). However, due to long-term contracts not all risks can be identified and controlled by the analysis of IFRS and financial statements. In this regard, in most countries with a developed financial system along with mandatory reporting under IFRS introduces a requirement for the provision of MCEV reporting. The question of the necessity of introducing such reporting in Europe, America and others was disassembled, but there is no specified issues in our country nowadays. The development of financial markets in Russia may indicate the need to consider both accounting and financial reporting for Russian companies. The aim of this work is to analyze whether the introduction of economic accountability, consistent with the market in our country, taking into account the specifics of insurance products and the General economic situation. For this purpose: • the state of the life-insurance industry in Russia was described • the description of the reporting standards of life-insurance companies in the Russian Federation • the current method of constructing MCEV-reporting was Considered in examples of countries where such reporting is introduced, • The differences between IFRS and MCEV statements were selected. Relevant information to the market, shareholders, the regulator carries the MCEV was reflected. • The methodology of MCEV-reporting was adapted for the Russian market. • the necessity of providing statements prepared in accordance with the MCEV Principles was analyzed by an example of the typical products of the company for life insurance