Chapter 7 v.2 Flashcards
Which set of rules can you follow for accountancy rules
IFRS or UK GAAP
If you are a quoted company, what accountancy rules do you have to follow?
IFRS- due to the stock exchange
What happens if you want to become a quoted company but you follow UK GAAP rules?
Have to change to IFRS
Why would you use IFRS accountancy rules
because you are either
a quoted company or
because you have a number of international subsidiaries - easier to have one set of accounts than localised accounts for different countries
UK GAAP applies to what countries only?
UK only. IFRS is UK and international
As an insurer, what two things to insurers have to do for IFRS
Claims development table
Follow the IFRS 4 guidelines
What is a claims development table
Look at previous claims (such as a load of EL claims) and how long until it actually finalised. The tool used by Actuaries to calculate IBNR.
If you are quoted, what are the accountancy guidelines in IFRS for insurers?
IFRS 4
If you are a UK GAAP insurer what the two accountancy guidelines that you MUST follow- will be in exam
102 and 103
What is the difference between UK GAAP 102 and 103- will be in exam
102- general rules and applies to all firms
103- accountancy rules that just relate to insurance companies
What is a micro entity
Anything below £650,000 turnover
If you are not a micro company, what is compulsory for any insurance business
FRS 102 and FRS 103
Which does a UK insurer have to complete when following UK GAAP
102 and 103
What are the insurance rules for UK GAAP
103 only
What is UK GAAP 105
for small entities- no longer have to be audited/ just have to do basic accounts
