Insurance contracts - the exposure draft

In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please re-read the article before attempting the questions again.

  1. Why did the IASB introduced IFRS 4, Insurance Contracts as an interim standard in 2004?

  2. Who do the proposals on insurance contracts apply to?

  3. Which of the following types of insurance contract is not exempted under the new exposure draft?

  4. What is the measurement model used to value insurance contracts under the exposure draft?

  5. Which of the following elements of the measurement model is not favoured by the FASB?

  6. What is the main problem with the risk adjustment in the measurement of an insurance contract?

  7. How are incremental acquisition costs, ie. costs of selling, underwriting, and initiating an insurance contract dealt with under the exposure draft?

  8. When does an insurer first recognise an insurance contract?

  9. Which of the following examples of insurance contracts would not result in unbundling:

  10. Which of the following items would not be disclosed in the income statement under the exposure draft?