[Illustrative Checklist] on Disclosure Obligations under Ind AS 104 | Insurance Contracts

The objective of Ind AS 104, Insurance Contracts, is to specify the financial reporting for insurance contracts by any entity that issues such contracts (described in this Ind AS as an insurer). In particular, this Ind AS requires, (a) limited improvements to accounting by insurers for insurance contracts, (b) disclosure that identifies and explains the amounts in an insurer’s financial statements arising from insurance contracts and helps users of those financial statements understand the amount, timing and uncertainty of future cash flows from insurance contracts. As per the requirements of this standard, an entity must comply with the below-mentioned disclosure obligations:

I. Whether disclosure has been made by the insurer about the information that identifies and explains the amounts in its financial statements arising from insurance contracts has been provided

II. Whether disclosure shall be made by the insurer about the information that enables users of its financial statements to evaluate the nature and extent of risks arising from insurance contracts has been provided

III. In order to comply with the above disclosure requirements whether the insurer has disclosed the following:

a) Accounting policies adopted for insurance contracts and related assets, liabilities, income and expense

b) The recognised assets, liabilities, income and expenses (and, if it presents its statement of cash flows using the direct method, cash flows) arising from insurance contracts.

c) The assumptions that have the most effect on the measurement of the recognised amounts are described in (b), what is the process used to determine such assumptions, and whenever practicable, a quantified disclosure of those assumptions.

d) Separate disclosure of the effect of changes in assumptions used to measure insurance assets and insurance liabilities which have a material effect on the financial statements

e) Reconciliations of changes in insurance liabilities, reinsurance assets and, related deferred acquisition costs, if any

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