ABC LIFE LIMITED
PROFIT AND LOSS ACCOUNT
19XX
19XX-1
Note
$
Insurance Premium Revenue
Outward Reinsurance Expense
6.
$
1046
(25)
1021
Investment Revenue
Other Revenue
Total Revenue
7.
405
1426
Claims Expense
Reinsurance Recoveries Revenue
8.
(674)
(674)
Administration Expenses
(Increase) Decrease in Net Policy Liabilities
(Increase) Decrease in Policy Owner Retained Profits
Other Expenses
Total Operating Expenses
9.
10.
10.
(112)
(533)
(16)
(1335)
Operating Profit Before Abnormal Items
and Income Tax
91
Abnormal Items before Income Tax
Operating Profit before Income Tax
Income Tax Attributable to Operating Profit
Operating Profit After Income Tax
91
35 **
56
Profit/Loss on Extraordinary Items
Income Tax Attributable to Profit/Loss on
Extraordinary Items
OPERATING PROFIT/LOSS AND
EXTRAORDINARY ITEMS AFTER
INCOME TAX
-
11.
56
Retained Profits at the Beginning of the Year
212
Dividends Provided for or Paid
(46)
SHAREHOLDERS’RETAINED PROFITS AT
THE END OF THE
YEAR
3.
222
** Note the treatment of income tax assumes no change to the quantum of tax.
ABC LIFE LIMITED
BALANCE SHEET
19XX
19XX-1
Note
$
Cash
Outstanding Premiums
Receivables
239
59
929
Equity Securities
Debt Securities
Property
Other Investments
Total Investment Assets
Plant and Equipment
Gross Policy Liabilities Ceded Under Reinsurance
Excess of net market value of interests in subsidiaries
over recognised net amounts
Other Assets
$
1614
2336
500
600 **
5050
10.
29
313
6
TOTAL ASSETS
6625
Creditors
Provisions
Borrowings
Premiums in Advance
Subordinated Debt
Gross Policy Liabilities
Gross Policy Liabilities Assumed
Under Reinsurance
Policy Owner Retained Profits
Other Liabilities
157
241
55
100
5126
12.
10.
10.
10.
TOTAL LIABILITIES
697++
6376
NET ASSETS
249
Share Capital
Reserves
Shareholders’Retained Profits
27
222
TOTAL SHAREHOLDERS’EQUITY
3.
249
++ AASB 1038 prevents the recognition of negative policy owner retained profits (PORP). Where this situation
arises, the elimination of the negative PORP will require amendment to certain of the attached Notes to the
financial statements. APRA will provide further information on this particular issue on request.
** Classification of Investment Assets pragmatic only. This item represents Unit Trusts in original illustrative
example.