CA Final Download the best Free CA FINAL android app for cracking your exam! Download Now
They are the best ca final faculties in India. They have produced many toppers & rank holders. Their video classes are available only here -
CHECK VIDEO CLASSES HERE

Educational Material on Ind AS 104 Insurance Contracts

Educational Material on Ind AS 104 Insurance Contracts

Ind AS 104 Insurance Contracts : Ind AS 104, ‘Insurance contracts’, applies to all issuers of insurance contracts whether or not the entity is legally an insurance company. It does not apply to accounting for insurance contracts by policyholders. This Ind AS prescribes a liability adequacy test. An insurer shall assess at the end of each reporting period whether its recognised insurance liabilities are adequate, using current estimates of future cash flows under its insurance contracts. If that assessment shows that the carrying amount of its insurance liabilities is inadequate in the light of the estimated future cash flows, the entire deficiency shall be recognised in profit or loss.

Educational Material on Ind AS 104 Insurance Contracts

Ind AS 104 Insurance Contracts : Insurance contracts are contracts where an entity accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if the insured event adversely affects the policyholder. The risk transferred in the contract must be insurance risk, which is any risk except for financial risk. Disclosure is particularly important for information relating to insurance contracts. Ind AS 104 has two main principles for disclosure. Entities need to disclose the following:

  1. Information that identifies and explains the amounts in its financial statements arising from insurance contracts
  2. Information that enables users of its financial statements to evaluate the nature and extent of risks arising from insurance contracts

Relevant link to download the Educational Material: 

Educational Material on Ind AS 104 Insurance Contracts

Ind AS 104 Insurance Contracts : The objective of Ind AS 104 is to specify the financial reporting for insurance contracts by any entity that issues such contracts and the standard is developed with the intention of minimizing short-term system changes. It allows entity to continue to use their existing accounting policies for insurance contracts, provided that the existing policies meet certain minimum requirements set out in Ind AS 104. The key implications include segregation of products among insurance contracts and investment contracts, unbundling of deposit component from insurance contract, accounting for discretionary participation features in insurance contract, treatment of embedded derivatives in insurance contracts, liability adequacy test, treatment of deferred acquisition costs, reinstatement of reinsurance assets and liabilities, etc.

Objective

1.The objective of this Indian Accounting Standard is to specify the financial reporting for insurance contracts by any entity that issues such contracts (described in this Indian Accounting Standard as an insurer). In particular, this Indian Accounting Standard requires:

(a) limited improvements to accounting by insurers for insurance contracts.
(b) disclosure that identifies and explains the amounts in an insurer’s financial statements arising from insurance contracts and helps users of those financial statements understand the amount, timing and uncertainty of future cash flows from insurance contracts.

Scope

  1.  An entity shall apply this Indian Accounting Standard to insurance contracts (including reinsurance contracts) that it issues and reinsurance contracts that it holds. financial instruments that it issues with a discretionary participation feature (see paragraph 35). Ind AS 107 Financial Instruments. Disclosures requires disclosure about financial instruments, including financial instruments that contain such features.
  2. This Indian Accounting Standard does not address other aspects of accounting by insurers, such as accounting for financial assets held by insurers and financial liabilities issued by insurers (see Ind AS 32 Financial Instruments: Presentation,Ind AS 39 Financial Instruments: Recognition and Measurement and Ind AS 107).
  3. An entity shall not apply this Indian Accounting Standard to product warranties issued directly by a manufacturer, dealer or retailer (see Ind AS 18 Revenue and Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets). Employers’ assets and liabilities under employee benefit plans (see Ind AS 19 Employee Benefits and Ind AS 102 Share-based Payment) and retirement benefit obligations reported by defined benefit retirement plans.
  4. For ease of reference, this Indian Accounting Standard describes any entity that issues an insurance contract as an insurer, whether or not the issuer is regarded as an insurer for legal or supervisory purposes.
  5. A reinsurance contract is a type of insurance contract. Accordingly, all references in this Indian Accounting Standard to insurance contracts also apply to reinsurance contracts.

Educational Material on Ind AS 104 Insurance Contracts 

Ind AS Related all Posts :

Educational Material on Ind AS 104 Insurance Contracts

CAKART provides India’s top CA Final faculty video classes – online Classes – at very cost effective rates. Get CA Final Video classes from CAKART.in to do a great preparation for your exam.

Watch CA Final sample video lectures here
Watch CA Final best Author books   here
Watch CA Final free downloads  here
For any questions chat with us by clicking on the chat button below or give a missed call at 9980100288

Leave a comment

Your email address will not be published. Required fields are marked *