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

Section 11(3) of the Insurance Act, 1938 requires the signed accounts to be accompanied by a statement and a report. Which pair correctly describes them?

The accounts must be accompanied by a statement giving names, descriptions, occupations and directorships of the persons managing the business, and by a report on the affairs of the business during the period covered by the accounts.

  1. AA statement of names, descriptions, occupations and directorships of persons in charge of management, and a report on the affairs of the business during the periodCorrect
  2. BA statement of claims paid and a report on solvency margin
  3. CA statement of reinsurance treaties and a report on investments
  4. DA statement of shareholders' dividends and a report on actuarial valuation

Explanation

The provision requires a statement containing names, descriptions and occupations of, and directorships held by, the persons in charge of management, along with a report on the affairs of the business for that period. The other pairs are not mentioned there.

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