The Cabinet of Ministers of the Republic of Latvia, 1998 October 27, Regulation No. 421 (in Riga. No. 58, § 13) insurance companies annual report Regulations Issued pursuant to the insurance companies and supervision article 49 of the law on the second part i. General questions 1. Insurance Company for each year of coverage, prepare a report that provides a true and clear information on the insurance company's financial position and profit or loss.
2. the annual accounts of insurance undertakings (hereinafter annual report) to monetary unit is the lats. All operations (business) inventory every day sort of balance sheet, one of the values measured using the lats. Balance sheet assets and liabilities, as well as off-balance sheet items in foreign currency valued in dollars by the Bank of Latvia Exchange where a report at the end of the year.
3. the annual report shall include: 3.1 the insurance company balance sheet (annex 1);
3.2. profit and loss statement technical and non technical account (2, 3, and 4 of the annex);
3.3. the profit and loss account technical account for ground vehicle insurance against civil liability in respect of (annex 5)-insurance companies that issued the license in this compulsory insurance;
3.4. cash flow statement (annex 6 and 7);
3.5. the insurance companies take the Board and Council report;
3.6. review of changes in the balance sheet under "capital and reserves";
3.7. the message about the accounting methods and annex of the annual report;
3.8. insurance activity report.
4. insurance activity report contains information about the financial activities of the insurer related to insurance. It determines the form and content of the insurance supervision inspection. Insurance activity report does not check the sworn auditor or other person with a right to examine the annual accounts.
5. Annual report: 5.1 Specifies the full name of the insurance undertaking;
5.2 indicate the insurance company and Chairman of the Council, as well as Chairman of the Board, Council and Board members name and position (this information is also provided for those individuals who left during the year, those positions);
5.3. the balance sheet, the profit and loss statement, cash flow statement, statement of "capital and reserves" near the bottom of each page contains: 5.3.1 this di share company documents-Chairman of the Board, the Chairman of the Board, Executive Director and chief accountant's signature;
5.3.2. mutual insurance cooperative society documents-executive body or the head of the company and the main possible? (a) signature.
6. the annual accounts shall include descriptive information on the balance sheet, the profit and loss statement, cash flow statement items, off-balance-sheet items, as well as reveal other information that could have a significant influence on, or may have a significant effect on the financial position of the insurance company's assessment.
7. These provisions in chapter IV, VI and X items listed reflect each individual in the order specified. With Arabic numerals in the designated items are allowed to split further, taking into account the particularities of the insurance companies. Denoted by an Arabic numeral in the new items can be added, if the content is not encapsulated within an existing item.
8. each balance sheet, profit and loss statement and cash flow statement line item represents the insurance companies and the accounting year in question for the preceding financial year. If these indicators are not comparable, it is necessary to clarify in the annual accounts.
9. The first reference year the reference year only. Balance sheet, profit and loss statements and cash flow statements for items that do not have an amount shown only when the previous year's report have been the item with the amount.
10. All transactions reflects the accounting. There should be no mutual's assets and liabilities, the balance of the revenue and expenditure of the translation.
11. If an asset or liability relates to a number of balance sheet items, its affiliation to other items reflect either under the item where it included, or in an annex to the annual report, if such evidence is required for understanding of the annual report. Insurance companies own shares or parts, as well as participation in the capital of the other company only reflect in the provided items.
12. insurance supervision Inspectorate develops recommended chart of accounts payable. Taking into account the specifics of the deal, insurance companies that may be added to the chart of accounts. In order to ensure control, accounting chart of accounts used to all the changes and the reasons for jābū t free insurance company accounting.
13. A sworn auditor or other person to whom the insurance supervisory inspection is granted the right to carry out insurance company inspection annual report (hereinafter referred to as the sworn auditor), prepares a written opinion, in particular, indicate whether the insurance companies and the annual report drawn up reports and the Group's annual report and the report gives a true and fair view of the company's assets, liabilities and financial position at the end of the year, on profits and losses cash flow statement for the year, as well as indicate whether the sworn auditor has received all the required information and necessary clarification.
14. Records and other documents, the insurance company shall be recorded and stored in accordance with the established in the Republic of Latvia in a standard document and the law "on the archives".
II. preparation of the annual report submission and publication of the annual report of 15 signature: 15.1 the insurance company's annual report – Chairman of the Board, President and ceo of the Council (if a Board or a member of the Council considers that the annual report is not approved, or expressed objections, which he wants to communicate to the general meeting of shareholders, it must be specified with a special note of the Management Board of the insurance company and the Council);
9.4. mutual insurance cooperative society annual report-executive body or the head of the society.
16. Annual report (except this rule 3.8 of the document referred to) check the sworn auditor and approval of the general meeting of shareholders before the annual accounts shall be submitted to insurance supervision inspection.
17. the company no later than the year following the year to 30 April, but the parent company no later than seven months after the end of the accounting year, shall submit to the State Revenue Service Department at the company location in the copy of the annual accounts together with the auditor's findings and the sworn explanation if the annual report is not approved. After a year of review appointed by the general meeting of shareholders or the axis n-mutual cooperative associations-members ' general meeting (the meeting authorized) a duplicate submit to the State revenue service. No later than one month after the approval of the annual report to the general meeting of shareholders or-sa v starpēj insurance cooperative associations-members ' general meeting (the meeting authorized) insurance company balance sheet, profit and loss statements and sworn auditor opinion shall be published in the newspaper "journal".
18. If the insurance company is published in the annual report and the report or the Group's annual report, it must be in a form and in which versions it has been audited, the report shall be published together with the auditor's opinion, and the note (if any). If the auditor has been any objection to a i v he refused to approve the annual accounts, shall notify this fact, stating the reasons for refusal.
19. If the annual report and other documents are not published in full, clearly indicate that it is published in abridged annual report. In short, to be published in the annual report with the Roman numerals denote the balance sheet items. The auditor's opinion, and the note (if any) shall be published in full.
III. Reports 20. the annual report shall include the following reports: 20.1. insurance companies writing Board and the report of the Council, establishing responsibility for the veracity of the annual accounts and of the Management Board and signed by the President of the Council;
20.2. sworn auditor's opinion on the annual report;
20.3. review of changes in the balance sheet liability item "capital and reserves", prepared in accordance with international accounting standards;
20.4. report on accounting methods used for drawing up the annual report and annual accounts.
21. A sworn auditor examine the annual report of insurance company and report company management. The report found deficiencies, as well as view specific insurance-related issues (determined by the insurance supervisory authority). A copy of the message sent to the insurance supervisory authorities.
22. The provision referred to in paragraph 20 of document content is determined by the insurance supervision inspection.
IV. The balance sheet asset I subscribed but not paid. share capital II. Intangible assets and formation expenses 1. Formation expenses and capital cost of establishment.
2. Cover the costs of the issue of the US.
3. Intangible assets.
III. Investment 1. Land and buildings.
2. Investment in associated companies and subsidiaries: 2.1. shares in subsidiaries;
2.2. the issuing of securities and loans to subsidiaries;
2.3. part or related companies.
3. other investment: 3.1. shares and other variable-yield securities;
3.2. fixed income securities;
3.3. investment in shares of investment funds;
3.4. with mortgage loans guaranteed;
3.5. other loans;
3.6. deposits with credit institutions;
3.7 other investments.
4. deposit guarantee of contributions to the Reinsurer.
IV. Investment funds with investment risk life insurance policyholders v. debtors 1. Accounts receivable insurance operations: 1.1. policy special trivia;
1.2. the mediator.
2. Customer settlement operations with reinsurers.
3. Other receivables, with a separate indication of the customer-related enterprises.
Vi. Other assets tangible assets 1.
2. Cash at bank and in hand.
3. An insurance company owned by State axis of the JRC.
VII. Accrued income and deferred expense 1. Accrued interest and rent.
2. Deferred acquisition costs.
3. other prepayments and deferred income.
Total assets equity and liabilities i. capital and reserves share capital Subscribed 1.
2. Share premium.
3. Revaluation reserve.
4. Legal reserve.
5. other statutory reserves.
6. Retained earnings: 6.1. prior year retained earnings;
6.2. for the year retained earnings.
II. Subordinated liabilities III. 1. Technical reserve unearned premiums and unexpected risks: 1.1. gross amount;
1.2. the reinsurers share (-).
2. Life insurance: 2.1 the gross amount;
2.2. the reinsurers share (-).
3. Deferred insurance claims: 3.1 the gross amount;
3.2. the reinsurers share (-).
4. Reserve for bonuses and rebates: 4.1. gross amount;
4.2. the reinsurers share (-).
5. The equalization reserve.
6. other technical reserves: 6.1. gross amount;
6.2. the reinsurers share (-).
IV. Reserves for unit-linked life insurance contracts 1. Gross amount.
2. the Reinsurers share (-).
V. provisions for other liabilities and damages VI. Vii. Reinsurer deposits creditors 1. Vendor from direct insurance operations.
2. Creditors settlement operations with reinsurers.
4. Credit institutions.
7. Social Security.
8. other creditors, the creditors separately related companies.
VIII. Accrued expenses and prepayments received 1. Accumulated investment income and rental.
2. Deferred acquisition costs.
3. dividend for the year.
4. Previous years not paid dividends.
Total liabilities v. instructions for the individual balance sheet items 23. cue company is the Commitment of the company to which the insurance undertaking holds between 20 and 50 percent of the share capital and not the majority.
24. If the insurance company owns more than 50 percent of the share capital of another company or is a majority, the insurance company shall prepare consolidated accounts.
25. item (I) and (II) the assets reflected in the records of the funds of insurance undertakings are carried out in accordance with the accounting standards as approved by the Cabinet of Ministers. Intangible investments indicate the payment of acquired rights (concessions, patents, licenses, rights to use the trade mark, the right of rental URu.tml.) the acquired business of positive goodwill and other assets, for which no material form. Intangible invested the remainder of u s indicate the value (from the original values minus accumulated depreciation). As soon as it becomes known that investment in intangible assets an insurance company revenue will further, scrapped. Intangible fixed assets written down systematically the everlasting life of de r.
26. active (3.2) III item-fixed-income securities-bills of Exchange and other specified securities, which brings a steady income and the credit institution or other global companies and public organisations, when they are active (2.2.) III item. Securities, the rate of which varies depending on the specific factors (interest rate on the interbank market, European stock index changes) are also considered securities, which brings increased income in the mail.
27. active III (3.3) item-investment part of investment funds-fund investment certificates released for investment firms.
28. active (3.4) III item indicated by mortgage guaranteed loan. (Iii) asset (3.5)-other loans-loans for the benefit of the count also the owners, except in cases of life insurance companies, when, on the basis of the insurance contract concluded with legal persons, is issued loan insured of a worker (legal person) or to the insured person, provided that the issued loan amount reduces the insurance companies take the risk in part because these loans reflect a balance sheet assets item V (3). All IC m mass of loans (including the leasing-purchase-lease) decrypts the annual accounts. With mortgage loans guaranteed presented separately, even if they are supported by policy.
29. active III (3.6)-deposits with credit institutions under-represents the amount of use is limited in time. Amounts deposited without such time limits, even if they bear interest, indicate active (2) VI.
30. active III (3.7) item-other investment-reflect the investments not covered by active III (3.1, 3.2, 3.3, 3.4, 3.5 and 3.6) item. This contribution amounts decrypts the annual accounts.
31. active III (4) item-reinsurers guarantees the contributions in the form of deposit-indicates the amount of reinsurance companies, which cedējoš the company is owed and which complies with the guarantees deposited in these societies or cedējoš to third parties. These amounts may not be counted with other amounts owed by the company cedējoš reinsurers also increase or decrease, or increase the amount i that the reinsurer owes to the cedējoš public.
32. under item IV-Assets investment funds with investment risk life insurance policyholders,-life insurance companies indicate the value of the invested funds of u.
33. (1) the Active item VI-tangible assets-specifies the insurance company owned property, which is intended to be used for the supply of services, for rental to or hiring, the Administration's goals, as well as other asset preservation or repair needs and which are not intended to be sold in accordance with the company's core business. Tangible assets indicates the remaining value (from the original values minus accumulated depreciation). Here also point without the purchase of the leased asset design, improving rekon t or restoration costs, which have changed the asset leased the remaining economic value.
34. active (4) item VI-other assets-specifies the amounts do not reflect VI (1, 2 and 3). This item decrypts the annual accounts.
35. under item VI-Assets accrued income and prepaid expenses-represent expenses incurred during the year under review but relating to the next financial year, as well as the income relating to the financial year, if they can get the next financial year.
36. active VII (1) item-accrued interest and rent-reflects the interest and rent amounts that are earned up to the balance sheet date but not yet received.
37. active VII (2) Item-deferred acquisition costs – their customer acquisition expense part of the conclusion of contracts of insurance paid direct customer acquisition costs (brokers commissions paid, expenses for document presentation) that relate to the following reference periods of j s.
38. Passive I (1) under-subscribed capital-subscribed capital indicate the size of the fixed insurance company shareholders ' register. Mutual insurance cooperative society this item all the members of the society shares value total.
39. Passive I (2) item-share premium-reflects the difference between the insurance companies stock issue price and the nominal value, excluding fees accumulated reserves for payment of capital.
40. the passive I (3.) item-revaluation reserve-indicates fixed assets and interests in other companies share capital increase in value after revaluation.
41. Passive I (4.) item-legal reserve-reflects the insurance company and under the supervision of the law set out in article 36 of the proposed mandatory funds. Funds used for not only, the balance sheet shows the losses incurred, it consists of the current year and previous year profit, equity contributions, donations and contributions of money of accumulated funds to pay for a new stock issue.
42. under item II-subordinated Liabilities liabilities – reflects the funds that the insurance company is borrowed for a period of not less than seven years if the loan agreement provides that the lender can reclaim the loan before the deadline, only the insurance company in case of liquidation and his claim is satisfied after all other creditors, but prior to the shareholders ' claims. Fix mentioned u tions must be clearly reflected in the contract.
43. Passive III (1.1, 2.2, 3.2, 4.2 and 6.2.)-reinsurer share the item-indicates the amount under reinsurance contracts is deducted from gross technical reserves.
44. Liability (1) III item indicates the provision for unearned premiums and technical provisions of the risks. Reserves nopelnītaj premiums not constitute providing for risk, some insurance companies may be subject to review by the end of the year to cover all the expenses on rewards and existing agreements. ošināšan APDU r Unexpected risk reserve-addition to the provision for unearned premiums reserve, which includes the risk that the insurer may be at the end of the reference year.
45. Passive (2) III item specifies the life insurance technical reserves, which is calculated by the aktuārmatemātik method according to insurance company life insurance portfolio. Method decrypts the annual accounts.
46. Liabilities (3) III item points for outstanding claims technical provisions, which is not allowed for the calculation of the deduction or discount hidden, to reduce the current volume of the reserves if there is a significant probability that the actual amount to be paid will be higher. This reserve is calculated by taking into account: log in, but to 46.1. balance sheet date of the outstanding reimbursement claims (not accepted the insurer's decision on reimbursement of costs);
46.2. the requirements for the taking, but up to the balance sheet date no reported cases of insurance, in the light of experience of such claims and the amount;
46.3. apply for claims settlement costs are compounded by an insurance company or outside it;
46.4. the reduction of estimated amounts carefully, you will be able to recover with an assignment or a valid limit sales.
47. If the non-life insurance remuneration paid as an annuity, for outstanding claims technical provisions shall be calculated by the aktuārmatemātik method.
48. Passive III (4) item-reserve for bonuses and discounts-indicate the amount of the premium or discount the cost to policyholders in the form of owners or the Contracting Parties, which are the beneficiaries of the treaty relationship.
49. Liabilities (5) III item-equalization reserve-the amounts indicated for future possible activities of insurance loss compensation. Method decrypts the annual accounts.
50. the passive III (6) item-other technical provisions-indicates the amount that the insurance company can create special, specific insurance risks. Method decrypts the annual accounts.
51. The liabilities item IV indicate the spare unit-linked life insurance contracts that are created to cover losses from insurance policies on the investment risk of the policyholder.
52. under item V of Liabilities-provisions for other liabilities and injury-doubtful debts reflect the savings created by the use of the investment cost for the adjustment of the annual report. This item can only be specified amounts for damages, debt or expenses, attributable to the financial year or previous years and which, before the balance sheet date is expected or certain but whose amount, picking a i v occurred is not known. Savings shall not exceed the amount required, and these amounts are based on the annual accounts of each provision separately.
53. The liabilities item VII-creditors, tax-reporting year indicate the amount of tax paid on the tax forms, as well as a review on corporate income tax amount related to the extraordinary income and expenses.
54. under the liability VIII-accrued expenses and prepayments received-represents income that an insurance company receives prior to the balance sheet date but relating to a subsequent financial year, as well as the costs relating to the financial year, if these expenses will be paid during the following financial year only.
Vi. Profit and loss calculation scheme 55. Insurance companies profit and loss statement has two parts: technical and non-technical result. Technical result is not subordinate to the Technical result and is calculated first (individual life insurance companies and non-life insurance sa (b) population ageing). Technical result is reflected as the non-technical account opening details. Those assurance undertakings carrying out accident and health insurance, the financial performance of these types of insurance reflects a profit and loss account technical account for non-life insurance. The profit and loss statement in the non-technical account the reported size of income before corporate income tax calculation is the Corporation's taxable income for.
Technical result. 1. Non-life insurance premiums earned: 1.1. gross premiums written;
1.2. the reinsurers share (-);
1.3. change in the provision for unearned premiums and unexpected risk reserve, gross amount (+/-);
1.4. the change in the provision for unearned premiums, reinsurers ' share (+/–).
2. investment income transferred from non-technical account.
3. Other technical income, net amount.
Sub-total (A) = (1 + 2 + 3).
4. the Agreed remuneration requirements, net: claims paid 4.1:4.1.1. gross amount;
4.1.2. the reinsurers share (-);
4.2. changes to the deferred compensation provisions: 4.2.1 gross amount;
4.2.2. the reinsurers share (-).
Sub-total (B) 5. changes in other technical provisions, net, which is not reflected in the other points (+/-).
6. Gra tion and discount, net.
7. Net operating expenses: 7.1 the customer acquisition costs;
7.2. change in deferred client acquisition costs (+/-);
7.3. administration expenses;
7.4. the reinsurance commissions and participation in profits (-).
8. Other technical expenses, net.
Sub-total (C) = (5 + 6 + 7 + 8.)
9. changes to equalization (+/-).
10. the total (non-life insurance technical account): A-(B + C + 9.)
Technical result. Life insurance premiums earned: 1 1.1. gross premiums written;
1.2. the reinsurers share (-);
1.3. the change in the provision for unearned premiums, net (+/-).
2. Investment income: income from participation 2.1. companies (distinguishing income from related companies);
2.2. income from other investments (separate indication of income from related companies): 2.2.1. income from land and buildings;
2.2.2. income from other investments;
2.3. the revaluation of investments;
2.4. income from investment sales.
3. Unrealized investment income.
4. Other technical income.
Sub-total (A) = (1 + 2 + 3 + 4).
5. the Agreed remuneration requirements: 5.1. remuneration paid: 5.1.1. gross amount;
5.1.2. the reinsurers share (-);
5.2. changes: the deferred compensation provisions 5.2.1. gross amount;
5.2.2. the reinsurers share (-).
Sub-total (B) changes in the other 6 technical provisions, net, which is not reflected in the other points (+/-): 6.1. life insurance reserves, net: 6.1.1. gross amount;
6.1.2. the reinsurers share (-);
6.2. other technical provisions, net of the AU.
7. Bonuses and rebates, net.
8. Net operating expenses: 8.1 the customer acquisition costs;
8.2. the change in deferred client acquisition costs (+/-);
8.3. administrative expenditure;
8.4. the reinsurance commissions and participation in profits (-).
Sub-total (C) = (6 + 7 + 8).
9. Investment expenditure: 9.1. of investment management expenses, including interest paid;
9.2. the revaluation of investments;
9.3. the loss from investment sales.
10. Unrealized investment losses.
11. Other technical expenses, net.
12. the investment income Transferred to the non-technical account (-).
Sub-total (D) = (9 + 10 + 11 + 12.)
13. Total (life insurance technical account): A-(B + C + D) is Not a technical result.
Life and non-life insurance 1. technical balance, non-life insurance (+/-).
2. technical balance, life insurance (+/-).
3. Investment income (non-life insurance): 3.1. income from participation in companies (distinguishing income from related companies);
3.2. income from other investments (separate indication of income from related companies): 3.2.1. income from land and buildings;
3.2.2. income from other investments;
3.3. investment revaluation;
3.4. this measure of investment realization brings.
4. investment income carried over from the technical account (life insurance).
Sub-total (A) = (1 + 2 + 3 + 4).
5. investment expenditure:
5.1. investment management charges, including interest paid;
5.2. revaluation of investment;
5.3. losses from investment sales.
6. investment income transferred to the technical account (non-life insurance).
7. Other income.
8. Other expenses, including the reassessment of values.
Sub-total (B) = (5 + 6 + 7 + 8.)
9. profit or loss of the insurance (A-B).
10. extraordinary income.
11. extraordinary expenses.
12. Profit or loss for the financial year before tax payment: (A + 10.)-(B + 11.)
13. Income tax.
14. other taxes.
15. The accounting year retained earnings or loss.
VII. Instructions for individual profit and loss account items 56. Technical account non-life insurance (1.1.) and technical account life insurance (1.1.). Gross premiums in the signed list all amounts under insurance contracts is due in the reporting year, irrespective of whether these amounts have been received, earned or not. These amounts include: 56.1. bonuses, which will be signed and for which the premium calculation can be done only after the end of the insurance year;
56.2. the renewed premiums written-premiums paid on life insurance continuation, at the end of the current insurance year;
56.3. of new premiums written-one-time premiums charged by life insurance company under the insurance contract at the beginning of its operation;
56.4. annual amount of premiums if premiums expected to pay more often than once a year;
56.5. insurance companies share in the total volume of premiums (coinsurance);
56.6. reinsurance premiums which are due from the transferees and tālākdevēj transferees, including contributions to the reinsurers in the book;
56.7. reduction: 56.7.1. the transferees and the aggregate claim credited to tālākdevēj transferees, less amounts of reinsurance portfolio;
56.7.2. for reversed and discontinued premiums.
57. Technical account life insurance (1.2) and technical account non-life insurance (1.2.). The reinsurance premium payable to the State any premiums for all reinsurance contracts concluded by the insurance company. Here add the contributions of which the reinsurer portfolio pay the conclusion or changing reinsurance contracts.
58. the technical account-life insurance (1.3.) and technical account non-life insurance (1.3 and 1.4). Increase or reduction in the balance sheet under liabilities on the date of the statement is reflected in the profit and loss statement under "change in the provision for unearned premiums and unexpected risk reserve" with a plus or minus sign.
59. the technical account for life assurance (5) and technical account non-life insurance (4). Agreed remuneration requirements: 59.1. paid insurance claims, which include: 59.1.1. in the reporting period for claims paid amount;
59.1.2. apply for claims adjustment expenses that directly relate to the remuneration and is compounded by the public (salaries and social contributions for employees, which adjusts consideration requirements) or outside (payments to lawyers, experts are invited to tune in remuneration);
59.1.3. the amount of the reduction of losses recovered by the sale or marketing of valid;
59.2. the change in the outstanding provisions, reflected by a minus sign if the balance sheet liability item "for outstanding claims reserves" to the annual report of the day formed the growth, and with the plus sign if this the liabilities of the balance sheet under a reduced universe.
60. the technical account-life insurance (7) and technical account non-life insurance (6). The item "bonuses and rebates, net" indicates all during the financial year, of the amount not paid and the claims of policyholders or third parties. Applying a discount or making deductions, insurance company annual accounts show a total amount before rebate application or a deduction therefrom, as well as the categories of remuneration to which o discount or from which it made withdrawals, and methods applied in the consideration of each category.
61. Technical account life insurance (8.1) and technical account non-life insurance (7.1). Customer acquisition expenses all costs relating to the acquisition of new customers, but the non-life insurance – also with existing insurance treaty renewals.
62. the technical account-life insurance (8.3) and a technical account non-life insurance (7.3). Administration expenditure indicates costs that are created by running the collection of insurance premiums, premium and discount handling, assignability and accepted reinsurance. This item reflects the tangible and intangible assets depreciation and staff go out of the State of charge.
63. the technical account-life insurance (12.) and the technical account non-life insurance (2), not the Technical result (4 and 6). Life insurance investment income is considered to be part of the technical account non-life insurance, but it is not part of the technical account. On this item subject to the following entries: Technical result technical account Non-life insurance investment income investment income allocation x x non-life insurance investment income investment income allocation x x 64. If part of the investment income in the calculation of gain or loss is transferred from the non-technical account to the technical account for non-life insurance, the gear shall be deducted from item 6. non-technical account item 2 plus technical account. If the profit and loss statement part of the investment income presented in the technical account for life assurance, transferred to the non-technical account, the amount transferred shall be deducted from item 12 technical account and adds 4. non-technical account item.
65. when calculating life insurance investment income portion that is transferred from the technical results on the non-technical account, use the following balance sheet items as: capital and reserves---------------------------------capital and reserves + technical provisions 66. Non-life insurance investment income in the calculation of the portion that is transferred from the non-technical account to the technical account, use the following balance sheet items as: technical reserves---------------------------------capital and reserves + 67. technical reserves technical account life insurance (3 and 10). A life insurance company under the "unrealized investment income and losses" reflect the income and losses from investments linked to the market.
68. the technical account of the life and non-life insurance (7). The item "other revenues" indicates revenue that is not reflected in the profit and loss account technical account and does not include investment income, as well as revenue from currency rise, profits from foreign sales or purchase and received fines. This revenue decrypts the annual accounts.
69. no technical r due to life and non-life insurance (8). The item "other expenses" expenses are not reflected in the profit and loss account technical account and does not include expenditure on investment, as well as payments to Auditors, experts, konsultan t s, insurance supervisory authorities, paid fines, losses from currency drops in and losses from foreign currency purchase and sale. This expenditure decrypts the annual accounts.
70. the technical account of the life and non-life insurance (10). Extraordinary revenue indicates some of the revenues that are not subject to the insurance company's core business. This revenue decrypts the annual accounts.
71. the technical account of the life and non-life insurance (11). Extraordinary editions indicate individual expenses that do not apply to insurance companies operating as well as natural disasters, fire and other emergency injury. This expenditure decrypts the annual accounts.
72. the technical account of the life and non-life insurance (13). Income tax shall be stated in accordance with the law "on enterprise income tax" prescribed calculation.
VIII. assessment of the annual report 73. Insurance undertakings shall draw up the annual accounts in accordance with the following: 73.1 ip Prince. going concern assumption-it is believed that the company will operate in the future and management has no intention or need to terminate the operation of the society or significantly reduce the amount of the transaction;
73.2. accrual basis-revenue and expenditure are reflected when they are incurred, regardless of cash receipt or payment date;
73.3. the principle of consistency-in each reporting period consistently apply the same accounting and valuation methods;
45.6. the principle of relevance-are reflected in all the items that are significant enough to affect the assessment of the annual report or annual report users further decision-making;
73.5. exposure of the form content-transactions and events are mirrored and listed according to their content and nature of the economic, and not just their legal form;
73.6. precautionary principle – revenue are listed only when they already get or mining safe, but expected expenses are recorded when they are to risk. The precautionary principle does not justify the items too high or too low;
45.8. each reporting period opening balance in accordance with the closing balance of the previous period;
73.8. assets and liabilities to evaluated and their components separately.
74. where the credibility of these notes in paragraph 73 to the principles of the conflict of the transaction or event, with priority given to the precautionary principle and the principle of materiality.
75. The insurance company may disregard this paragraph 73 of the principles referred to in the only valid reasons explaining their effect on the company's financial position and results of the evaluation report about the accounting methods and obtaining insurance supervision inspection written permission.
76. If the insurer law and other related laws in accordance with the procedure laid down by the applicable tax credits and deductions for certain taxes, the tax rebate amounts presented in the annual report. To the insurer at the end of the reporting period indicated in the customer and vendor accounts all taxes and levies (taxes, fees, interest, penalties and other amounts) to the State budget and local budgets, coordinate with tax administration and reflects in detail the annual accounts.
77. the customer and vendor debt balances in the balance sheet are presented according to the source documents and records in the accounting records and the compliance with customer and vendor records balance sheet date. In cases of dispute the balance the balance sheet presented in accordance with accounting data. Deb i tor receivable, the receipt of which is in doubt, the options may create a questionable amount of savings. The accounts receivable balances in the balance sheet shows the net value, calculated from the gross book value of debt according to the accounting data, except the n edroš debts generated savings. If the debt is considered to be bad (lost without hope of ever recovering), accordingly written off of the item "provisions for other liabilities and losses" or included in the loss.
78. the assets and liabilities is initially recorded at cost or purchase price (initial values). The initial value of fixed assets and intangible assets that have a limited life, reduced by depreciation expenses, calculated on the basis of the asset used this time. Asset reconstruction, enhancement, and restoration costs including the balance value of fixed assets (acquisition value, less depreciation expense) If, after the reconstruction, improvement of fixed assets and restore is mai n lawmakers fixed asset economic indicators. If the real asset (market) value is not transitory circumstances, become less than the book value of fixed assets annual report presented at reduced real values and asset impairment ie k allows the profit and loss statement.
79. The long-term investment in debt securities with fixed income are shown in the balance sheet at their acquisition price in accordance with the following conditions: 79.1. the value of the securities, which are purchased with bonus (buying value exceeds the value of the deletion of securities) until the date of deletion of the securities gradually reduced the retirement this bonus and write-off amounts included in the profit and loss statement;
79.2. the value of the securities that are purchased at a discount (deletion of securities exceeds the buying price) until the date of deletion of the securities gradually increase the retirement amount of the discount, and this increase is included in the profit and loss statement.
80. Debt securities with fixed income, as well as shares and other securities with a fixed income that is not held as long-term investments, points at their buying-in price in accordance with the following conditions: 80.1. If the market price is lower than the purchase price, the value of the securities shown in the balance sheet reduced by the difference between the market price and written off expenditure;
80.2. where previously reduced the value of securities, the increase is attributed to increased revenue. Such securities must not specify a value that exceeds the purchase price.
81. This provision of the investments referred to in paragraph 80 of the securities, which are listed on the stock exchange, may be according to their market price (officially listed the purchase and sales price average) at the end of the year, if it is greater than the purchase price revaluation results including profit and loss (a) measured under "revaluing Investments".
82. The loan assessment is still outstanding loan balance actually. The loan receivable, but not yet received usury interest no long-term financial investments and such debts accrued in General.
83. Bills of Exchange received from customers, the payment of the debt, are not considered securities.
84. to evaluate assets, not subject to this provision 78. the requirements laid down in paragraph 1, may, at their real (market) value of the asset at the date of the last evaluation in the following order: 84.1. where the market price of the asset becomes greater than the value of the balance sheet and has reason to believe that the value of the platform will be temporary, and it may be revalued at market value, including the value of the balance of the increase in the item "revaluation reserve" (the value of the land may be increased above their initial value);
52.3. the increase in value of a fixed asset in the balance sheet may be reflected, if this increase in value by at least two independent experts and the insurance supervision inspection the written permission.
85. revaluation reserve is reduced if the assets disposed of pārvērtēto selling or appreciation is no longer justified. Revaluation reserve assets included in the increase in value can be attributed to the profit and loss account only to the extent that recovered by selling assets or pārvērtēto participation in the share capital of other companies. Revaluation reserve may not distribute dividends.
86. The parent company will initially provide their participation in the share capital of subsidiaries acquisition costs, but each report at the end of the year it is adjusted according to the parent company's share in the equity of subsidiaries. For this purpose, you need to use a subsidiary company to the general meeting of the owners approved the annual report information. Value increases or reductions of the subsidiary's profit or loss (according to the proportion of the capital) indicates the parent company's profit and loss statement.
87. The amount of the technical reserves at all times must be such that the insurance company would be able to cover any liability that might arise from the insurance contracts.
88. The figures shown in the profit and loss account to the technical account, refer to the reporting year. Time difference should not be greater than twelve months. If necessary, the annual report shows the amount of the technical reserves increased to be sufficient current or future obligations.
89. one of the technical provisions shall be calculated by the same method is also used in subsequent years, if conditions do not justify the methods. In the annex to the annual report describes the method of calculation and when it changes, reasons for, as well as how to change the calculation method affect the condition of assets and liabilities, profits and losses.
90. The profit and loss statement technical account non-life insurance rates reflect the following distribution: 90.1. accident insurance;
90.2. the health insurance;
90.3. road transport (excluding railways) insurance;
90.4. rail transport insurance (a);
90.5. aircraft insurance;
56.3. shipping insurance;
56.4. cargo insurance;
90.8. property insurance;
90.9. terrestrial vehicle liability insurance;
90.10. aircraft liability insurance;
90.11. the shipowners ' civil liability insurance;
90.12. General liability insurance;
credit insurance to 90.13 *.;
90.14. guarantee insurance;
90.15. miscellaneous financial loss insurance;
90.16. ju ridisk Edition insurance;
90.17. assistance insurance.
91. The profit and loss statement technical account life insurance rates reflect the following distribution: 91.1. individual contracts with savings;
individual contracts without 91.2 savings;
91.3. group contracts with savings;
91.4. group contracts without savings.
92. Life insurance with savings is the insurance contract, if it contains one or more of the following conditions:
57.2. (a) the amount of insurance pdrošinājum benefits or claims paid insurance contract at the end of the one-off costs or regular cost;
92.2. life insurance contract is a perpetual (life insurance);
92.3. insurance case is a certain age of the insured person, the insured person achieving entry into marriage, childbirth;
92.4. the insured person's individual account in which the insurance contract period is accumulated.
93. the annual accounts shall bear the following information: 93.1. the following non-life insurance company's profit and loss statement Technical result indicators, broken down between direct insurance and reinsurance accepted (if accepted reinsurance is 10% or more of gross premiums written premiums): 93.1.1. gross premiums written;
93.1.2. gross premiums earned;
93.1.3. the gross remuneration paid;
93.1.4. gross administration expenses;
93.2. these life insurance company's profit and loss statement Technical result indicators, broken down between direct insurance and reinsurance accepted (if accepted reinsurance is 10% or more of gross premiums written premiums): 93.2.1. individual contract bonuses;
93.2.2. the group contract bonuses.
94. The profit and loss statement technical account of net operating expenses administration expenses for them, who are not related to specific insurance type, distribution, based on premiums or premiums under insurance benefits, and reflect, by each class. The insurance company can distribute its administration expenses, based on other calculations, if you received a written confirmation by the head of the executive body. The Administration's failed u mu distribution written reasons add to the annual report.
IX. annual report of the Group of 95. annual report of the group consists of the parent company and the subsidiary company, which combined with the consolidation method.
96. The Group's annual report provides information about the entire group as a whole as separate economic units independent of the joint review of the legal relations of the company.
97. The Group's annual report, dated the day they drafted the annual report of the parent company.
98. The Group's annual report reflects all of the Group's profit or loss for the year and the Group's own funds. Calculation of intra-group profit and the Group's companies paid dividends between robbed. The Group's annual report process, the parent company of the year re r view combined with the subsidiary company by adding together like items of the annual accounts, the funds, equity, revenue, and payment amounts.
99. when preparing the annual accounts of the group, within the framework of the group used the same accounting methods to reflect similar conditions occurred in similar economic transactions. If the subsidiary is using other accounting methods, the subsidiary company shall be adjusted accordingly when it is used in the Group's annual report. When you calculate the amount of such adjustment is not possible in practice, this fact explains, providing information about the departments of the Group's annual report, which used different accounting methods.
100. A subsidiary of performance include the Group's annual report with the date of acquisition of the subsidiaries.
X. cash flow statement 101. Cash flow statement contains information on how the insurance company acquires and uses cash and cash equivalents. Cash flow statement complements the rest of the information provided in the annual report and reflect changes in the company's net assets and financial position of the company.
102. the cash equivalents are to be considered as the short-term highly liquid investments, which in a short time can be converted into cash, and the chance that their value will change, is small. The following contribution to the remaining maturity from the date of purchase, must be no longer than three months. Stock is not considered cash equivalents.
103. The cash flow statement does not reflect the movement of funds from one item cash and cash equivalents.
104. The insurance company cash flow statement reflects only the current period actually received and the amounts paid, dividing it as cash flow obtained from insurance activities, investing activities and financing activities. Insurance company cash flow statement shall be drawn up in accordance with the provisions of annex 6 or 7 and annex of the annual report explaining cash flow statement items included in the content. The item "cash and cash equivalents" represent the distribution between cash in hand, cash at bank and cash equivalents.
105. the cash flow associated with the profit and loss account extraordinary items, classified according to their home as the flow of money from insurance activities, investing activities and financing activities.
106. Exchange rate fluctuation effects on money and its equivalents do not reflect cash flow obtained from insurance activities, investing activities and financing activities. It reflects the individual item. Unrealised gains and losses arising from changes in foreign currency exchange courses by cash and cash converter equivalent items are not considered cash flow.
107. cash flow obtained from insurance activities: 107.1. gross premiums received, less for reversed and premiums: 107.1.1. atdotaj life insurance-single premiums received and received regular payments of premiums;
107.1.2.-non-life insurance gross premiums received;
107.2. paid in the reporting period, reduced claims for recovering losses with the sale or marketing of valid: 107.2.1. life insurance-the compensation paid in a lump sum or regular payments;
107.2.2. non-life insurance-paid gross remuneration;
107.3. coinsurance premiums received;
107.4. pay for coinsurance contracts;
107.5. pay reinsurers;
107.6. received from reinsurers;
107.7. adopted reinsurance premiums;
107.8. payment for accepted reinsurance;
107.9. payment from other intermediaries and insurance companies about the distribution of the benefit received by the Commission;
107.10. administrative expenditure (the guarantee fund, the State insurance supervisory authorities);
107.11. taxes paid;
107.12. payment traffic to the Office;
107.13. cash spent elsewhere.
108. the cash flow from investment activities comprises: 108.1. investment growth (decrease) related companies and subsidiaries;
108.2. received income from investments and their exercise;
108.3. investment management fees (brokers, consultants).
109. Cash flows from financing activities comprise: 109.1. proceeds from the issue of shares;
10 9.2. paid cash for repurchased own shares in the company;
109.3. dividends paid;
109.4. other cash received.
XI. Profit and loss calculation for terrestrial vehicle liability compulsory insurance cover of 110. Insurance companies for which the licence has been issued for land vehicle insurance against civil liability in respect of the business, profit and loss statements about this type of compulsory insurance shall be drawn up by the respective schemes (5. attachs s).
111. the technical account ground vehicle owners civil liability compulsory insurance cover (1.1.1.). Gross premiums shown in accordance with Cabinet of Ministers 27 May 1997 of Regulation No 199 "rules on road transport owner civil liability compulsory insurance premiums, increase and reduction of the order and limits of liability of the insurer".
112. the technical account ground vehicle owners civil liability compulsory insurance cover (1.1.2.). Mandatory deductions are to be considered as a Cabinet of 13 May 1997, no 182 the provisions of the "traffic regulations" of the Office, the Cabinet of Ministers of 13 May 1997, regulations no 180 "land vehicles in the civil court's joint liability compulsory insurance guarantees (reserve) Fund Rules", Cabinet of Ministers of 13 May 1997, regulations No 179 ' ground vehicle insurance against civil liability in respect of the insurance policyholder interests (a) (i) the Fund rules of national regulators "certain compulsory interest payment from the insurance company premiums received in the form of compulsory insurance If they are intended for the following purposes: 112.1. (reserve) of the guarantee fund;
112.2. policyholder protection fund;
112.3. road traffic accident prevention measures;
112.4. deductions traffic Office.
113. The deduction percentage calculated from the amount of premiums received, which is formed by the accounting data Cabinet rules the deadline (month or quarter) the last date.
114. The technical account non-life insurance (1.1 of Chapter VI) insurance companies signed in premiums shows the difference between the provisions of annex 5, point 1.1.1 and 1.1.2 of the technical results, related to road vehicle insurance against civil liability in respect of the insurance.
115. The profit and loss statement technical account of net operating expenses administration expenses for them, who are not subject to compulsory insurance, distribution, based on premiums or premiums under insurance benefits. The insurance company can distribute its administration expenses, based on other calculations, if received by the head of the executive body of the company written confirmation. Written reasons for the method is added to the annual report.
116. The profit and loss statement technical account allocation of investment income to the gear part, which refers to the land insurance against civil liability in respect of the use of motor vehicles and other types of insurance. Total investment income distribution part of the gear on the basis of the relationship formed between the end of the year the total amount of the technical reserves and vehicle liability insurance in the minimum amount of the technical reserves established.
117. The first year of operation, if the insurance companies with land-based vehicle insurance against civil liability in respect of the deal without full financial year, investment income distribution can use a different calculation, if the head of the executive body of the company written confirmation. Written reasons for the method is added to the annual report.
118. According to the investment income carried forward part that applies to land vehicle insurance against civil liability in respect of, also distinguished investment expenditure relating to this insurance, and reflects this kind of compulsory insurance s technical results under point 8 (annex 5). The annual report shall be accompanied by an explanation of investment expenditure distribution with the head of the executive body of the company written confirmation.
119. Discounts (by reducing the amount of insurance premiums to the policyholder) ground vehicle owners civil liability compulsory insurance cover can be granted only in cases provided for by a Cabinet of 27 May 1997, Regulation No 199 of the "rules of the road transport owner civil liability compulsory insurance premiums, increase and reduction of the order and limits of liability of the insurer".
120. terrestrial vehicle liability compulsory insurance cover of the resulting financial performance indicates, in paragraph 10 (annex 5).
121. Be declared unenforceable: 121.1 Cabinet on 9 December 1996, Regulation No 448 ' insurance companies annual report "(Latvia's journal, 1996, 217./218.nr.; 1997, no. 314);
121.2. The Cabinet of Ministers of 2 December 1997, Regulation No 401 "amendments to the Cabinet of Ministers on 9 December 1996 the Regulation No 448 ' insurance companies annual report" (Latvian journal, 1997, 314. no).
Prime Minister g. shore Finance Minister r. tit