1964_INSURANCE_COMPANIES_ORDINANCE — Page 62

1988 Ed.]

Insurance Companies

[CAP. 41

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(1) the amount, if material, charged in respect of the hire of plant and machinery; (m) the aggregate amount of the dividends paid and proposed;

(n) the amount of any charge arising in consequence of the occurrence of an event in a preceding financial year and of any credit so arising shall, if not included in a heading relating to other matters, be stated under a separate heading;

(o) the amount of the remuneration of the auditors shall be shown under a separate heading, and for the purposes of this paragraph, any sums paid by the insurer in respect of the auditors' expenses shall be deemed to be included in the expression “remuneration”;

(p) (i) the aggregate amount of directors' emoluments;

(ii) if there are more than 3 directors, the aggregate amount of the emoluments of the 3 highest-paid directors;

(iii) the aggregate amount of compensation paid to any director or past director for loss of office as director.

27. The following shall also be stated-

(a) if depreciation or replacement of fixed assets is provided for by some method other than a depreciation charge or provision for renewals, or is not provided for, the method by which it is provided for or the fact that it is not provided for, as the case may be;

(b) the basis on which the charge for taxation is computed;

(c) any special circumstances which affect liability in respect of taxation for the financial year or liability in respect of taxation for succeeding financial years;

(d) except in the case of the first accounts, the corresponding amounts for the immediately preceding financial year for all items shown in the revenue account and the profit and loss account;

(e) any material respects in which any items shown in the revenue account or profit and loss account are affected-

(i) by transactions of a sort not usually undertaken by the insurer or otherwise by circumstances of an infrequent or non-recurrent nature; or

(ii) by any change in the basis of accounting; or

(iii) by any correction of fundamental errors in any of the preceding financial years.

PART 6: ADDITIONAL REQUIREMENTS IN RESPECT OF INSURERS CARRYING ON LONG TERM BUSINESS

Identification of Long Term Assets and Liabilities

28. This Part sets out the method of identification of long term assets and liabilities required under section 22 of this Ordinance.

29. All assets and liabilities not identified with its long term business at the end of the financial year of the insurer beginning next after the commencement of this Ordinance shall be so identified at that date ("the base date”).

30. In the case of liabilities, the amount to be identified shall be the aggregate of the following-

(a) the amount of the long term business fund or funds carried forward in the insurer's revenue account;

(b) the amounts of any accounting liabilities, reserves or provisions, other than those mentioned in (a) above, shown in the insurer's balance sheet as attributable only to the insurer's long term business;

(c) the amounts of any accounting liabilities, reserves or provisions, other than those mentioned in (a) and (b) above, shown or included in the insurer's balance sheet in relation to which there are records which identify them as attributable only to the insurer's long term business.

31. In the case of assets, the assets to be identified shall be such proportion of the insurer's total assets as the amount of the identified liabilities bears to the total liabilities of the insurer. The insurer's total assets shall be valued at a fair market value on the base date, the amount of the identified liabilities shall be determined as in paragraph 30, and the total liabilities of the insurer shall be taken as including the share capital and reserves but excluding provisions or other allowances in respect of depreciation, amortization, renewal or diminution in value (whether actual or potential) of assets: