Value Relevance Of Financial Accounting Statement In The Insurance Companies

ABSTRACTThis research offers a summary of the value relevance of financial accounting theory and its contribution to accounting standard in the insurance setting, but with special emphasis since the work of Ball and Brown (1968). The historic analysis focuses on the research that has been dominating the discipline from the late 1960s. This research evolves from the users’ perspective and their problems (the investor) toward the perspective of the preparers and their difficulties (the manager), covering the two opposite roles of financial accounting: an instrument for making investment decision…