Measurement Issues in Financial Placement of Czech Insurance Companies

Measurement represents one of the most important methodological elements of accounting because it affects the overall informative ability of financial statements. The chosen method of valuation affects not only the amount of assets and liabilities, but the size of costs and revenues of the entity as well; therefore it has a major impact on profit and solvency of insurance companies. The Czech definition of fair value at the national level is different from IFRS at the supranational level. By 2015, a new IFRS is expected to be issued, dealing with insurance reporting issues, including "fair value". This new standard is expected to address current deficiencies in insurance reporting guidance.d