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In the context of IFRS 4(Insurance Contracts), identify four items that are excluded from requirements of this standard.

In the context of IFRS 4(Insurance Contracts), identify four items that are excluded from requirements of this standard.

Answers

Items excluded from the requirements of IFRS 4 are:

- Product warranties issued directly by a manufacturer, dealer or retailer.

- Employers' assets and liabilities under employee benefit plans.

- Contractual rights or contractual obligations that are contingent on the future use of, or right to use, a non-financial item (for example, some license fees, royalties, contingent lease payments and similar items), as well as lessees' residual value guarantee embedded in a finance

- Financial guarantees into which an entity enters or retains on transferring to another party financial assets or financial liabilities within the scope of IAS39, regardless of whether the financial guarantees are described as financial guarantees, letters of credit or insurance contracts

-Contingent consideration payable or receivable in a business combination

-Direct insurance contracts that the entity holds (i.e. direct insurance contracts in which the entity is the policy holder). However, a cedant shall apply this IFRS to reinsurance contracts that it holds.

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marto answered the question on February 13, 2019 at 08:09

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