Important Points for IC 89 - Management Accounting Exam
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The regulator and financial analysts analyse the solvency margin by comparing the available solvency margin of the company with the required solvency margin calculated as per norms and regulations issued by the Regulatory Authority.
Computation of Solvency Margin takes the following aspects into considerations: Valuation of Assets, Determination of amount of liabilities, Determination of Solvency Margin, Compiliance of Specific requirement for Health Business.
Solvency Analysis in non-life insurance company is a comparativ study between available solvency margin and required solvency margin.
Market Test Ratios are mostly used for the listed companies or the companies whose stocks and debentures are traded in the stock exchanges.
Budget is a precise financial plan providing estimated revenues and costs and basis for control over future operations.
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