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POSSIBILITIES FOR APPLICATION OF PENSION INSURANCE ORGANISATION OF TEACHERS
IN BULGARIA
An attempt has been made to justify the thesis that the organisational development and improvement of the applied differentiated approach has a significant capacity to turn the pension insurance into a socio-economic corrective of the market evaluation of teachers’ labour by providing pensions in the amount appropriate to the contribution and ...
An attempt has been made to justify the thesis that the organisational development and improvement of the applied differentiated approach has a significant capacity to turn the pension insurance into a socio-economic corrective of the market evaluation of teachers’ labour by providing pensions in the amount appropriate to the contribution and significance of the teaching profession for the formation of human capital and socio-economic development and prosperity in Bulgarian society. The study of the opportunities for organisational development and improvement of the teachers’ public pension insurance is the main objective of the survey. The following specific tasks are set: study of principles and guidelines for differentiation of insurance activity; justification of the need for continuing development and improvement of the applied differentiated approach in the organisation of the pension insurance of teachers in Bulgaria; study of the specifics and evaluation of public pension insurance protection of teachers in Bulgaria; formulating proposals for development and improvement of public insurance of teachers in Bulgaria. The results of the survey show the need to develop and improve the pension insurance of teachers. Proposals to transform payments from the Teachers’ Pension Fund into a function of pension insurance contributions have been formulated. Organisational changes that bind the amount of pension for insured length of service and old age of teachers with their contribution to community development have been proposed.
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CLASSIFICATION, EVALUATION
AND ACCOUNTING POSSIBILITIES
FOR DERIVATIVE FINANCIAL INSTRUMENTS
The undeniable interest of economic theory and practice towards financial derivatives makes them a current subject of analysis. The existence of derivatives raises the logical question about their purpose. If an investor participates in the distribution of a company’s profits by holding its shares, why do they apply another instrument that is ...
The undeniable interest of economic theory and practice towards financial derivatives makes them a current subject of analysis. The existence of derivatives raises the logical question about their purpose. If an investor participates in the distribution of a company’s profits by holding its shares, why do they apply another instrument that is related to owner’s equity? The derivative markets create favorable opportunities by improving the efficiency of the underlying assets markets. Derivatives have lower transaction costs compared to other transactions with basic instruments on the spot market, they are more liquid and the risk can be transferred into a more effective, simple and inexpensive way. Proof for the significance of derivative instruments is also the EU-accepted IFRS 9 Financial Instruments. Therefore, it is important that the management of every organization is aware of the regulatory framework for financial instruments, as well as the effects of each transaction with financial instrument.
The main purpose of the study is to define a classification of derivative instruments and to mark key points in their accounting. The specific objectives that have to be solved are to highlight the alternatives for classifying derivatives and to focus on their immediate current accounting. The thesis is that the adequate classification and evaluation of these instruments are important factors for their correct accounting. The main conclusion is that proper classification of derivatives has a practical significance because there has to be determined whether the instrument has a value at the beginning, which has a timely accounting impact. Their internal and time values have a significant role as well, because in the changes they must be clearly distinguished from the change in the fair value of the derivative itself.
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INFLUENCE OF THE LEGAL FRAMEWORK
IN DETERMINING THE REQUIRED AMOUNT
OF TECHNICAL RESERVES FOR MOTOR THIRD PARTY LIABILITY INSURANCE
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is ...
The problems arising from the recent global financial and economic crisis have led to a rethinking of many texts both in local laws and at Community level. New rules and regulations have gradually been introduced concerning all economic agents operating within the European Union. The introduction of these regulations in the field of insurance is associated with the adoption of Solvency II Directive. The implementation of the Directive in the Bulgarian legislation was realized with the adoption of a new Insurance Code, effective as of 1 January 2016 and Financial Supervision Commission’s Ordinance No 53 of 19 January 2017, which determines the order and method of allocation of technical reserves by the insurers working on the Bulgarian insurance market.
The study assesses the impact of the regulatory framework on the technical reserves of insurance companies offering Motor Third Party Liability Insurance. It outlines the problems that insurers have to deal with and the effect that the methods, used for calculating the required amount of technical reserves, have on the insurance company’s balance sheet.
The study has shown that there are differences in the methodologies described in the Solvency II Directive and Ordinance No 53 of Financial Supervision Commission. They concern the valuation of insurance companies’ assets and liabilities, the recognition of cash flows and the treatment of insurance income and expenses. Therefore, legislative changes are needed to synchronize the requirements of Bulgarian legislation with the European Directive Solvency II, with a view to optimizing the amount of technical reserves for Motor Third Party Liability Insurance.
