Page 164 - IC46 addendum

Insurance Contracts

Guidance on implementing

Ind AS 104 Insurance Contracts

This guidance accompanies, but is not part of Ind AS 104.

Introduction

IG1 This implementation guidance:

(a) illustrates which contracts and embedded derivatives are within
the scope of Ind AS 104 (see paragraphs IG2–IG4).

(b) includes an example of an insurance contract containing a
deposit component that needs to be unbundled (paragraph IG5).

(c) illustrates shadow accounting (paragraphs IG6–IG10).
(d) discusses how an insurer might satisfy the disclosure

requirements in the Standard (paragraphs IG11–IG71).

Definition of insurance contract

IG2 IG Example 1 illustrates the application of the definition of an
insurance contract. The example does not illustrate all possible circumstances

IG Example 1: Application of the definition of an insurance contract

Contract type Treatment in phase I

1.1 Insurance contract Within the scope of this Standard,
unless covered by scope exclusions
(see definition in Appendix in paragraph 4 of the Standard.
Some embedded derivatives and
A of this Standard and deposit components must be
separated (see IG Examples 2 and
guidance in Appendix B). 3 and paragraphs 7–12 of the
Standard).

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