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CMA Intermediate · Corporate Accounting and Auditing · Accounts of Banking, Electricity and Insurance Companies

Section 11(1) of the Insurance Act, 1938 requires an insurer, at the end of each financial year, to prepare a balance sheet, a profit and loss account, a revenue account and which other statement?

Besides the balance sheet, profit and loss account and revenue account, Section 11(1) requires a separate account of receipts and payments. It is prepared at each financial year end in accordance with the regulations specified.

  1. AA separate account of receipts and paymentsCorrect
  2. BA fund flow statement
  3. CA statement of changes in equity only
  4. DA segment report on each class of business

Explanation

Section 11(1) lists the balance sheet, profit and loss account, a separate account of receipts and payments, and a revenue account, prepared according to the specified regulations. A fund flow statement is not listed.

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