The Determinants about Life Insurance Industry to adopt Fair value model Accounting Method to evaluate Investment Properties

• Main Authors: JENG,BI-SHI, 鄭碧璽
• Other Authors: HUANG,SHAIO-YAN
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/9aqry8

碩士 === 國立中正大學 === 會計與資訊科技學系碩士在職專班 === 105 === Financial Supervisory Commission R.O.C(Taiwan) announces that the company who have investment properties evaluation from 2014 can take fair value model, However, this selective restrictive option might influence significantly to our life insurance industry. The reason is that life insurance industry is kind of investment properties which is responsible for strengthening the Balance of assets and liabilities, and its level of strengthening is much higher than the proportion of the general manufacturing industry. This event study research explores the announces event of choice for investment properties can take the fair value model cause the results for cumulative Abnormal returns from purely life insurance industry and the financial holding company which contain life insurance subsidiary, and research the differences financial indicators of choice for fair value or cost based model. Then most of the information and sources come from Taiwan economic journal(TEJ) and insurance industry public information observatory. The results of the research demonstrate that no information content with this announcement. The reason might be other administration changed the law of choice for fair value model, Regarding the selectivity of using fair value model, it proved that the life insurance companies with different financial conditions have significant differences in the choice of accounting method to evaluate investment properties. However, the difference of risk based capital ratio is less influential with the selection of the accounting method evaluation.