An accounting expert from Padjadjaran University, Ersa Tri Wahymuni,\nstated that the implementation of Financial Accounting Standard (PSAK)\n117 can strengthen transparency in the insurance industry while\nencouraging more healthy and measurable business growth. Ersa noted that\nthis new accounting standard enables the performance of insurance\ncompanies to be viewed more comprehensively, including their ability to\ngenerate profit from both insurance business and investments.<\/p>\n
\u201cThe impact of PSAK 117 implementation on life insurance companies is\nnot uniform; some companies may record an increase in profit or a\ndecrease in liabilities, while others may experience a decline in\nprofit. Therefore, changes in financial reports cannot be generalised,\u201d\nErsa said during a media workshop regarding the socialisation of PSAK\n117 in Jakarta on Friday.<\/p>\n
She explained that changes in profit or liability figures observed\nduring the initial period of the new standard\u2019s implementation do not\nnecessarily indicate a deterioration in company performance. Such\nchanges may simply be part of the transition process due to the use of\ndifferent measurement methods.<\/p>\n
Furthermore, Ersa assessed that PSAK 117 provides economic benefits\nby making the quality of an insurance company\u2019s core business easier to\nmeasure. Financial statements will no longer only show the amount of\npremiums received, but also how companies manage risks, set product\nprices, pay claims, and generate profits from insurance activities.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/expert-implementation-of-psak-117-strengthens-insurance-industry-transparency-1785513701", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }