IDEAS home Printed from https://ideas.repec.org/a/mup/actaun/actaun_2013061072123.html
   My bibliography  Save this article

Accounting and tax implications of the creation and use of technical provisions of commercial insurance companies

Author

Listed:
  • Jana Gláserová

    (Department of Accounting and Taxes, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

  • Eva Vávrová

    (Department of Finance, Mendel University in Brno, Zemědělská 1, 613 00 Brno, Czech Republic)

Abstract

Entities such as commercial insurance companies are obliged to create technical provisions in order to fulfill their activities. Technical provisions are used to cover liabilities of commercial insurance companies arising from insurance and reinsurance activities. The principal aim of this paper is to determine the impact of the creation and use of technical provisions for some important items of the financial statements, which are liabilities, a balance sheet, profit and an income tax base. A prerequisite to fulfill the objective of the paper is to analyze the accounting legislation for technical provisions in an insurance company. The intention of the presented paper can be divided according to its conception into two parts. The first part of the paper is devoted to methodological aspects in relation to the general definition of the accounting principles and their importance in the accounting of commercial insurance companies. The second part deals with the methodological procedure of the accounting of the creation and use of technical provisions and the specifics of how they are reported in the financial statements of commercial insurers. Conclusions of the paper show contemporary issues in the analyzed area in the context of the financial crisis.

Suggested Citation

  • Jana Gláserová & Eva Vávrová, 2013. "Accounting and tax implications of the creation and use of technical provisions of commercial insurance companies," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(7), pages 2123-2131.
    • Handle: RePEc:mup:actaun:actaun_2013061072123
    DOI: 10.11118/actaun201361072123
    as

    Download full text from publisher

    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201361072123.html
    Download Restriction: free of charge
    File URL: http://acta.mendelu.cz/doi/10.11118/actaun201361072123.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.11118/actaun201361072123?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mup:actaun:actaun_2013061072123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivo Andrle (email available below). General contact details of provider: https://mendelu.cz/en/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.