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(PDF) Quick Reference on Ind AS 104, Insurance Contracts

Download Quick Reference on Indian Accounting Standard (Ind AS) 104, Insurance Contracts

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Ind AS 104: Insurance Contracts

The objective of this Standard is to specify the financial reporting for insurance contracts by any entity that issues such contracts (described as an insurer).

In particular, this Ind AS requires:

(a) limited improvements to accounting by insurers for insurance contracts;

(b) disclosure that identifies and explains the amounts in an insurer’s financial statements arising from insurance contracts and helps users of those financial statements understand the amount, timing and uncertainty of future cash flows from insurance contracts.

Definitions

Insurance contract is a contract under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder.

Insurance risk is any risk, other than financial risk, transferred from the holder of a contract to the issuer.

Insured event is an uncertain future event that is covered by an insurance contract and creates insurance risk.

Insurer is the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs.

Policyholder is a party that has a right to compensation under an insurance contract if an insured event occurs.

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