Important Points for IC 26 - Life Insurance Finance Exam
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Contingent Liability may have also to be indicated in respect of (a) uncalled capital on investments and (b) account of underwriting of shares and debentures. This is done in the consolidated Balance Sheet prepared by the Central Office of LIC.
Every life insurance company has to prepare Revenue Account as per Form A-RA., Profit and Loss Account as per Form A-PL., Balance sheet as per Form A-BS., and Receipt and payment A/c.
Every life insurance company shall have to follow the accounting standards issued by the ICAI while preparing its financial statements.
It is to be remembered that any premium received by an insurer is not its income as such. Rather, the company is creating liabilities against policies.
The value of investment property shall be determined at historical cost, subject to revaluation at least once in every three years.
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