Important Points for IC 26 - Life Insurance Finance Exam
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As per the IRDA regulations on accounts and audit, every insurance company must mandatorily prepare a cash flow statement by using the Direct Method called the Receipt and Payment Account.
Basis for providing depreciation must be consistently followed and disclosed.
Accounting Standard 10 defines Fixed Assets. Fixed asset is an asset held with the intention of being used for the purpose of producing or providing goods or services and is not held for sale in the normal course of business. Therefore it does not deal with forests, plantations and other natural resources, wasting assets, livestock, expenditure on explorations of oil, natural gas and real estate development.
Revaluation if any should be of class of assets and not an individual asset.
Accounting standard 15 defines employee benefits. Some of the categories of employee benefits are short-term employee benefits and termination benefits.
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