Page 179 - IC46 addendum
P. 179
Indian Accounting Standards
returns on surrender or insurance contract
maturity. (unless the embedded
guarantee is life-
contingent to a
significant extent) and is
not closely related to
the host insurance
contract. Fair value
measurement is
required.
2.8 Equity-linked return The embedded Fair value measurement
available on surrender derivative is not an is required.
or maturity.
insurance contract
(unless the equity-
linked return is life-
contingent to a
significant extent) and is
not closely related to
the host insurance
contract. Fair value
measurement is
required.
2.9 Embedded guarantee The embedded Not applicable. The entire
of minimum equity guarantee is an contract is an insurance
returns that is available insurance contract contract (unless the life-
only if the policyholder (unless the life- contingent payments are
elects to take a life- contingent payments insignificant).
contingent annuity. are insignificant),
because the
policyholder can benefit
from the guarantee only
by taking the annuity
option (whether annuity
rates are set at
inception or at the date
of annuitisation). Fair
value measurement is
not required (but not
prohibited).
2.10 Embedded guarantee If the guaranteed Fair value measurement
of minimum equity payments are not is required.
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