TaxTMI 
TaxTMI 
Accounting Principles for Preparation and Presentation of Financial Statements
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.... (2) Acquisition costs: Acquisition costs, if any, directly attributable to the policy shall be expensed over the contract period or period of risk on the policy. The unexpired portion of the policy shall be deferred and recognised as Deferred Acquisition costs and expensed in subsequent periods. Explanation: Acquisition costs are the costs that vary with and are primarily related to the acquisition of new and renewal insurance contracts. The most essential test is the obligatory relationship between costs and the execution of insurance contracts (i.e. commencement of risk) (3) Claims Cost: The ultimate cost of claims shall comprise of the policy benefit amount and specific claims settlement costs, wherever applicab....
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.... asset is carried at re-valued amount. Any impairment loss of a re-valued asset shall be treated as a revaluation decrease of that asset. (iii) Gains or losses arising due to changes in the carrying amount of real estate shall be taken to equity under 'Revaluation Reserve. The 'Profit or Loss on sale of investments', as the case may be, shall, after adjusting include the accumulated changes in the carrying amount (previously recognised in equity under the heading 'Revaluation Reserve') in respect of that particular property and being recycled to the relevant Revenue Account or Profit and Loss Account on sale of that property. (iv) The bases for revaluation shall be disclosed in the notes to accounts. Th....
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....mogenous, availability of willing buyers and willing sellers is normal and the prices are publicly available. (iv) Unrealised gains or losses arising due to changes in the fair value of listed equity shares and derivative instruments shall be taken to equity under the head "Fair Value Change Account". The 'Profit or Loss on sale of investments', as the case may be, shall include accumulated changes in the fair value previously recognised in equity under the heading "Fair Value Change Account' in respect of a particular security and being recycled to the relevant Revenue Account or Profit and Loss Account on actual sale of that listed security. (v) The Authority may issue directions specifying the amount to be r....
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....stment over its carrying amount. The increased carrying amount of the investment due to the reversal of the provision shall not exceed the historical cost. (5) Loans: Loans shall be measured at historical cost subject to impairment provisions. The IIO shall assess the quality of its loan assets and shall provide for impairment. (6) Loans Secured by Insurance Policies Issued by the IIO: Valuation of a loan secured by an insurance policy issued by the IIO must be as the amount of the loan but not exceeding the amount payable on a surrender or early termination of the policy as at the date the policy is being valued. (7) Linked Business: A separate set of financial statements, for each segregated fund of the linked b....
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.... (iv) Guarantees given by or on behalf of the IIO; (v) Statutory demands/liabilities in dispute, not provided for; (vi) Reinsurance obligations 'to the extent not provided for in accounts'; and (vii) Others, as may be specified (2) Actuarial assumptions 'for valuation of liabilities for life policies in force'. (3) Encumbrances created over the assets of the IIO. (4) Commitments made and outstanding for Loans, Investments and Fixed Assets. (5) Basis of amortisation of debt securities. (6) Claims settled and remaining outstanding for a period of more than six months on the balance sheet date. (7) Value of contracts in relation to investments, for: ....