Page 167 - IC46 addendum

Indian Accounting Standards

1.9 Investment contract containing Paragraph 35 of the Standard sets

a discretionary participation out requirements for these contracts,

feature. which are excluded from the scope

of Ind AS 39.

1.10 Investment contract in which Within the scope of Ind AS 39.
payments are contractually Payments denominated in unit
linked (with no discretion) to values representing the fair value of
returns on a specified pool the specified assets are measured
of assets held by the issuer. at current unit value (see paragraph
AG33(g) of Appendix A of Ind AS
39).

1.11 Contract that requires the Insurance contract, but within the
issuer to make specified scope of Ind AS 39, not this
payments to reimburse the Standard. However, if the issuer has
holder for a loss it incurs previously asserted explicitly that it
because a specified debtor regards such contracts as insurance
fails to make payment when contracts and has used accounting
due under the original or applicable to insurance contracts,
modified terms of a debt the issuer may elect to apply either
instrument. The contract may Ind AS 39 and Ind AS 32 or this
have various legal forms Standard to such financial guarantee
(eg insurance contract, contracts.
guarantee or letter of credit). The legal form of the contract does
not affect its recognition and
measurement.

Accounting by the holder of such a
contract is excluded from the scope
of Ind AS 39 and this Standard
(unless the contract is a reinsurance
contract). Therefore, paragraphs 10–
12 of Ind AS 8 Accounting Policies,
Changes in Accounting Estimates
and Errors apply. Those paragraphs
specify criteria to use in developing
an accounting policy if no Indian
Accounting Standard applies
specifically to an item.

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