Insurance regulator with the national accounting body is trying to put forward a recommended accounting practice for the insurance industry.
The Recommended Accounting Practice Guidelines will be short of an accounting standard, but could be adapted as one later. rn
rnThe move with the cooperation of the insurance industry is primarily aimed at streamlining accounting practices and presentation formats of insurance companies.rn
rnThere is no international accounting standard on accounting for insurance companies, but the International Accounting Standards Board is in the process of developing one.rn
rnAccountants say that some industries like Insurance require special standards due to the various types of contracts that companies enter into.rn
rnAccounting practice and presentation formats for life and general insurance differ among companies and the recommended accounting practice seeks to give a formal structure.rn
rnCompanies will be encouraged to adopt the voluntary practice by the insura