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Accounting for Insurance syllabus

ACS 20710 units · 44 topicsAcademic year 2083/84
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Accounting for Insurance

10 units

1. Introduction (3 LHs)

  1. Insurance concept and types
  2. Nepal Insurance Authority
  3. Insurance industry evolution in Nepal
  4. Insurance nature, objectives, importance and functions
  5. Nepalese sector opportunities and challenges

2. Nepal Insurance Authority (3 LHs)

  1. Functions, duties and powers
  2. Role in developing Nepal's insurance sector
  3. Licensing insurers, reinsurers, agents, brokers and surveyors

3. Product Design and Development (8 LHs)

  1. Life-insurance product design and types
  2. Non-life product design and types
  3. Product approval and actuary role
  4. Marketing strategies and agency management
  5. Surveyor appointments, commissions, fees and accounting

4. Basic Accounting Concepts (4 LHs)

  1. Principles, assumptions, conventions and rules
  2. Account classifications and accounting users
  3. Double entry, journals, ledgers and trial balance

5. Non-Life Insurance Business (6 LHs)

  1. Premium concepts and accounting
  2. Coinsurance and technical reserves
  3. Claims, recovery and outstanding claims
  4. Reinsurance premium and commissions
  5. Acquisition costs and deferred costs
  6. Management expenses, investments and regulatory charges

6. Life Insurance Business (6 LHs)

  1. Life insurance fund and policy register
  2. Premium types and accounting
  3. Agent commissions, incentives and medical fees
  4. Maturity, surrender, death and annuity claims
  5. Reinsurance claims, outstanding claims and IBNR/IBNER
  6. Policy loans, expenses, investments and reserving

7. Accounting for Reinsurance (5 LHs)

  1. Reinsurance concept, importance and arrangements
  2. Facultative and treaty reinsurance; advantages and disadvantages
  3. Nepal regulation and reinsurance accounting systems
  4. Catastrophic reinsurance and Bordeaux
  5. Premium, claims, commissions, settlement and foreign exchange treatment

8. Internal Control Mechanism (3 LHs)

  1. Reconciliation with banks, reinsurers and others
  2. Bank reconciliation statements
  3. Audit committee, compliance, internal, statutory and tax audits

9. Preparation of Financial Statements (6 LHs)

  1. Insurance accounting regulations
  2. Profit and loss and other comprehensive income
  3. Revenue account and statement of financial position
  4. Cash-flow and changes-in-equity statements
  5. Accounting policies and notes

10. Financial Statements Analysis (4 LHs)

  1. Concepts, importance and limitations
  2. Liquidity, solvency, efficiency and profitability ratios
  3. Interpretation of ratios