Revenue Recognition for Insurance Business Activities in Vietnam

Determining when and how revenue is recognized is an important aspect of financial accounting. For insurance businesses, revenue recognition is even more complicated due to factors such as insurance contracts, insurance premiums, unearned insurance premiums, and compensation reserves. At the same time, the insurance business is one of the sensitive business fields. Therefore, information about business performance results in general and revenue in particular has a great impact on customers and determines the existence and development of insurance businesses. The article provides principles for recognizing revenue from insurance business activities based on the legal basis that insurance businesses in Vietnam are applying. Based on the challenges that insurance businesses in Vietnam are facing and will face in the future, the authors make several recommendations to ensure more accurate and consistent revenue recognition.