VALUATION BALANCE SHEET

Table of Contents

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 31ST 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 companyTypes of companiesOne person companyPublic VS Private Company
Sweat Equity SharesStock vs SharesReserve Capital Vs Reserve CapitalDifferent types of preference shares
Equity vs Preference sharesSlip System of PostingRedemption of preference sharesBuy Back of shares
DebenturesIssue of debenturesRedemption of DebenturesSources of redemption of debentures
Balance Sheet as per Companies Act 2013Divisible ProfitsAmalgamationPurchase consideration
Alteration of share capitalInternal ReconstructionProvision of banking regulation act 1949Asset classification of banking company
Non-performing assetsAdvances in banking companyLife Insurance AccountingValuation balance sheet
Financial statements of life insurance companiesFinal accounts of general insurance companies

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