This article intends to review the inconsistency between accounting stipulations of Financial Law and K-GAAP, and to propose improvement recommendations. 1. The name and scope of the financial statements in Insurance Companies should be revised. In other words, the name of ``balance sheet`` should be changed into ``statement of financial position.`` Also, ``statement of appropriations of retained earnings`` (or ``statement of disposition of deficit``) should be excluded in financial statements. 2. Both ``ordinary shares(capital stock-common)`` and ``preference shares (preferred capital stock)`` have been contained within equity according to Korean Commercial Code. Whereas, K-GAAP have been divided a ``preference shares`` into a financial liability or an equity instrument. But ``preference shares`` should not be divided into financial liability in order to protect creditors. 3. Dividends should be calculated by deducting ``unrealized gains`` as well as ``capital adjustments,`` ``unappropriated retained earnings`` from the net assets on the balance sheet. Also, Quarterly dividends should be calculated by deducting ``unrealized gains`` from the net assets on the balance sheet of the preceding period for the settlement of accounts.