Page 122 - IC26 LIFE INSURANCE FINANCE

Cost of Investments:

The cost of an investment should include acquisition charges such as brokerage, fees and duties.

If an investment is acquired-

 by issue of shares or other securities; then the investments should be valued at the fair

value of the issued security. (i.e. Issue price determined by statutory authority)

 by exchange of another asset; then the investments should be valued at fair value of the

asset given up or asset acquired, whichever is more clearly evident.

Investment Property - Investment Property is investment in land or buildings that is not intended to

be occupied substantially for use by, or in the operations of, the investing enterprise. An investment

property is classified as long-term investment.

Disposal of Investments - On disposal, the difference between the carrying amount and the

disposal proceeds, net of expenses, is recognized in the profit and loss statement.

Reclassification of Investments - Long-term to short-term: Transfers from one class to another class

are made at lower of cost and carrying amount at the date of transfer. Current to long-term:

Transfers are made at lower of cost and fair value at the date of transfer.

Disclosure:

1] Accounting policies for determination of carrying amount

2] Classification of Investments

3] The amounts included in Profit and loss statement profits or losses on disposal and changes in

carrying amount of current and long-term investments interest, dividends (showing separately

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