New book method to aid insurers' listing

The Insurance Regulatory and Development Authority will ask life insurance companies to comply with more conservative accounting norms as a prelude to their eventual listing in the stock markets. J Hari Narayan, chairman of Irda said in Kolkata that the accounting methods could be in place by August. The norms known as embedded value will net out certain aspects of goodwill from the calculation of a company s worth. This will ensure that a life insurance company s valuation will not be over-stated while minimising its liabilities. The changes will be made as part of the switchover to the International Financial Reporting ...

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