Choose the best answer. 1.Which statement is TRUE about an insurance contract? * a.The insurer is the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs. b.The policyholder is the party that has a right to compensation under an insurance contract if an insured event occurs. c.The insured event is an uncertain future event that is covered by an insurance contract and creates insurance risk. d.All of these statements are true about an insurance contract. 2. IFRS 17 provides that insurance contracts should * a.Comply with all existing IFRS b.Generally continue to be subject to existing accounting policies. c.Comply with the IFRS Framework document. d.Be covered by IAS 32 and IFRS 9
Choose the best answer.
1.Which statement is TRUE about an insurance contract? *
a.The insurer is the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs.
b.The policyholder is the party that has a right to compensation under an insurance contract if an insured event occurs.
c.The insured event is an uncertain future event that is covered by an insurance contract and creates insurance risk.
d.All of these statements are true about an insurance contract.
2. IFRS 17 provides that insurance contracts should *
a.Comply with all existing IFRS
b.Generally continue to be subject to existing accounting policies.
c.Comply with the IFRS Framework document.
d.Be covered by IAS 32 and IFRS 9
3.An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this constitutes a loan by the cedant that will be repaid in the future. IFRS 17 requires that *
a.The premium is not accounted for.
b.The insurance premium is accounted for a revenue.
c.The premium paid is treated purely as a loan.
d.Each payment by the cedant is accounted for as loan advance and as payment for insurance cover.
4.An entity should apply IFRS 17 to which of the following? *
a.Employer's asset and liabilities under employment benefit plans.
b.Reinsurance contracts issued by the entity.
c.Product warrantis issued by an entity which is manufacturer.
d.Contingent consideration receiable in business combination.
5.A reinsurance contract is *
a..A direct insurance contract.
b.A financial guaratne contract
c.An insurance contract issued by one insurer to compensate another insurer for losses on one or more contract issued by the latter.
d.All of these reinsurance contract.
6.The cedant is *
a.The guaranteed benefit under a reinsurance contract.
b.The discretionary participation feature of an insurance contract.
c.The insurer under a reinsurance contract.
d.The policyholder under a reinsurance contract.
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