VALUATION BALANCE SHEET

VALUATION BALANCE SHEET

In accounting, a valuation account is usually a balance sheet account that is used in combination with another balance sheet account in order to report the carrying amount of an asset or liability. An example of a valuation account that is associated with an asset is the Allowance for Doubtful Accounts. In case of insurance business, the valuation balance sheet is mostly prepared in case of life insurance business.

VALUATION BALANCE SHEET

FORM A- BS            

Name of the Insurer:        

Registration No. and date of registration with IRDA

BALANCE SHEET AS AT 31^ST MARCH, 20…..

PARTICULARS	SCHEDULE	Current Year	Previous Year
SOURCES OF FUNDS Shareholder’s Funds: Share Capital  Reserve and Surplus Credit/ (Debit) Fair value change account        Sub-total Borrowings Policyholder’s Funds: Credit/ (Debit) fair value change account Policy Liabilities Insurance Reserves Provisions for linked liabilities      Sub-total Funds for future appropriations                                          TOTAL	5 6 7
APPLICATION OF FUNDS Investments: Shareholders’ Policyholders’ Assets held to cover linked liabilities Loans Fixed assets Current assets: Cash and Bank Balance Advances and other assets     Sub-total (A) Current liabilities Provisions      Sub-total (B) Net Current Assets (C)= (A)-(B) Miscellaneous Expenditure (to the extent not written off or adjusted) Debit Balance In Profit and Loss Account (Shareholders’ Account)                                     TOTAL	8 8A 8B 9 10 11 12 13 14 15

GUIDELINES FOR PREPARATION OF BALANCE SHEET

• Investments in subsidiary/ holding companies/ joint ventures and associates shall be separately disclosed, at cost.
• Short term loans shall include those, which are repayable within 12 months from the date of the balance sheet. Long term loans shall be the loans other than short-term loans.
• Provisions against non-performing assets shall be shown separately.
• Loans considered doubtful and the amount of provision created against such loans shall be disclosed.
• Investments made out of catastrophe reserves should be shown separately.
• No items shall be included under the head ‘Miscellaneous Expenditure’ and carried forward unless:
• Some benefit from the expenditure can reasonably be expected to be received in future.
• The amount of such benefit is reasonably determinate.

Also study:	Also study:	Also study:	Also study:
Meaning of company	Types of companies	One person company	Public VS Private Company
Sweat Equity Shares	Stock vs Shares	Reserve Capital Vs Reserve Capital	Different types of preference shares
Equity vs Preference shares	Slip System of Posting	Redemption of preference shares	Buy Back of shares
Debentures	Issue of debentures	Redemption of Debentures	Sources of redemption of debentures
Balance Sheet as per Companies Act 2013	Divisible Profits	Amalgamation	Purchase consideration
Alteration of share capital	Internal Reconstruction	Provision of banking regulation act 1949	Asset classification of banking company
Non-performing assets	Advances in banking company	Life Insurance Accounting	Valuation balance sheet
Financial statements of life insurance companies	Final accounts of general insurance companies

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