Please provide summary on Ind AS 104 - Insurance Contracts
Actually I know nothing about insurance contracts as well. I want to know about insurance state farm, I have searched about it on many sites, but I can not find the right content. Please let me know about it.
Please provide summary on Ind AS 104 - Insurance Contracts The objective of this Indian Accounting Standard (Ind AS) is to specify the financial reporting for insurance contracts by any entity that issues such contracts. In particular, this Ind AS 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. This Ind AS does not address other aspects of accounting by insurers, such as accounting for financial assets held by insurers and financial liabilities issued by insurers. For ease of reference, this Ind AS 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. A reinsurance contract is a type of insurance contract. Accordingly, all references in this Ind AS to insurance contracts also apply to reinsurance contracts. **For More Information Read Here** [List of accounting standard] https://www.cakart.in/blog/list-of-accounting-standards/
**strong text**Dear Friend > 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. 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. **For More Information Read Here** [List of Accounting Standard] 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. 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 Thanks https://www.cakart.in/blog/list-of-accounting-standards/