China Life Insurance Co. will prepare its 2009 annual financial reports under China’s new accounting rules.
The company said in a statement Thursday evening that it received a notification from the Ministry of Finance that requires insurance companies to adopt new regulations regarding the accounting treatment of insurance contracts.
China Life Secretary Heng Kwoo Seng said in the statement: “The implementation of the above mentioned regulations will significantly affect the company’s accounting policies”.
However, the company didn’t say how its 2009 results will be affected by the new rules.
Under the rules, income from investment-type insurance products, which accounted for a large proportion of the premium income of mainland insurers over the past few years, won’t be booked as premium income.
The Ministry of Finance said earlier that the new accounting rules were aimed at integrating China’s accounting system with international standards.
