Assessment of Algerian Insurance Companies' Compliance with Accounting Standard No. 04: An Applied Study on TRUST Company, El Oued Branch

This study aims to shed light on the current state of accounting practices in Algeria’s insurance sector, particularly in the context of the country’s broader efforts to align with international accounting standards. Since the implementation of the Financial Accounting System (FAS) at the beginning of 2010, Algeria has been working to harmonize its national accounting framework with global norms. The FAS was designed to be comprehensive and applicable to all types of entities, including insurance companies, which have unique operational and financial characteristics. Through an applied case study on TRUST Insurance Company, El Oued branch, the research investigates the extent to which these companies comply with Accounting Standard No. 04, which corresponds to International Financial Reporting Standard (IFRS) 4. The findings reveal that while insurance companies in Algeria tend to apply IFRS 4 for initial measurement of insurance contracts, they do not consistently adopt it for subsequent measurements. This partial implementation is largely due to the fact that financial statements are primarily prepared for tax authorities rather than for external investors or stakeholders, limiting the motivation to fully adhere to international standards. The study highlights the need for regulatory reforms and greater emphasis on transparency and comparability in financial reporting within the insurance industry.