Important Points for IC 26 - Life Insurance Finance Exam
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Importation and transportation charges of machines purchased by the company should be added to the cost of machines. This is because it is treated as a deferred expenditure and hence capitalized.
Revaluation reserve cannot be utilized for payment of bonus to policyholders, since that would imply distribution of funds out of unrealized profits.
The premium received from business concluded in and outside India should be separately disclosed. Other options are not right with respect to such premium incomes.
Income from rent includes only the rent which has been actually realized. It must not include the notional rent.
First years commission on outstanding premium is at the rate of 20%.
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