Entity A writes a single policy for a P100,000 premium and expects claims to be made of P60,000 in year 4. At the time writing the policy, there are commission costs of P20,000. Assume a discount rate a 3% risk-free. The entity says that if a provision for risk and uncertainly were to be made, it would amount to P25,000, and that this risk would expire evenly over years 2,3, and 4. Under existing policies, the entity would spread the premiums, the claims expense, and the commissioning costs over the first two years of the policy. Investment return in years 1 and 2 are P2,000 and P4,000 respectively. What is the profit in year 1 and 2, using the matching and deferral approach in years  1 and 2?  

An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedent receives a repayment of the premiums at a future time if there are no claims under the contract. Effectively this constitutes a loan by the cedent that will be repaid in the future. PFRS 4 requires that:

Which of the following types of insurance contract would probably not be covered by PFRS 4?

PFRS 4 says that insurance contracts should:

PRFS 4 was introduced principally for what reason?

Which International Financial Reporting Standard will apply to those contracts that principally transfer financial risk, such as credit derivative?