Please use this identifier to cite or link to this item: https://www.um.edu.mt/library/oar/handle/123456789/4922
Title: The increasing complexity of an insurance company's financial statements and the effect this has on their understandability
Authors: Wallbank, Suzanne
Keywords: Financial statements -- Malta
Insurance companies -- Malta
Issue Date: 2012
Abstract: Purpose: The objective of this dissertation was to determine the different users of the financial statements of an insurance company, and what each user group seeks to achieve through the use of such statements. The study then moved on to determine whether the information presented in the financial statements, is actually understood by these users and if it is the information they actually need. Finally, recommendations were given as to what can be done to improve the understandability and usefulness of the information presented in the financial statements of an insurance company. Design: This study made use of qualitative research. Views and opinions were sought, not only from the users of the financial statements, but also from an expert in the field. This was done through the use of semi-structured interviews, which were carried out in person as well as over the phone, supplemented by reference to legislation, regulation, textbooks, journals and Internet publications. Findings: The results have shown that although most of the users understand the value of the information presented in the financial statements of an insurance company, some users have difficulty in understanding and interpreting it, probably as a result of the increasing complexity of these financial statements. Other users have found other sources of information to be more detailed and timely. Conclusion: As a result of the onerous regulation and the extensive disclosure requirements in place, the financial statements of an insurance company have generally become long and complex. As a result of this, many users are finding it increasingly difficult to interpret these financial statements and therefore are not being able to benefit from their use. Value: The intention of the financial statements of an insurance company is to provide the users with information, which is useful for decision-making purposes. However, if the users of these statements cannot understand them, then this defeats the whole point of their preparation.
Description: B.ACCTY.(HONS)
URI: https://www.um.edu.mt/library/oar//handle/123456789/4922
Appears in Collections:Dissertations - FacEma - 2012
Dissertations - FacEMAAcc - 2012

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