Insurance
The Expert Panel
on Insurance (EPI) develops and updates accounting and assurance standards
and guidance in insurance and mandatory provident fund related matters, in
conjunction with the Financial Accounting Standards Committee and the Auditing
and Assurance Standards Committee.
The EPI also maintains regular contact with the Insurance Authority and the
MPF Schemes Authority on accounting and assurance matters related to the insurance
and MPF industries.
In addition, the EPI reviews and comments on proposed insurance and MPF legislation
and regulations which affect the interests of members and the accountancy
profession.
| Date of submissions | Subject |
| 26 March 2004 | Consultation Paper on the Draft Code on Disclosure for MPF Investment Funds |
| 28 May 2002 | Guidance note on the corporate governance of authorised insurers |
Relevant professional pronouncements (Member's Handbook)
| Statement | Title |
| Accounting | |||||
| HKFRS 4 | Insurance Contracts | ||||
| HKAS 26 | Accounting and Reporting by Retirement Benefit Plans | ||||
| Assurance | |||||
| PN 620.2 | Communications between auditors and the Insurance Authority | ||||
| PN 810.1 |
Insurance
brokers-
|
||||
| PN 810.2 | The duties of auditors under the Insurance Companies Ordinance | ||||
| PN 860.1 | The audit of retirement schemes |
(A) Insurance Companies Ordinance - Auditors' reports issued pursuant to the Third Schedule
The Third Schedule to the Insurance Companies Ordinance contains, inter alia, requirements in respect of auditors' reports on the financial information, forms and statements for different categories of insurers to be submitted to the Insurance Authority (IA).
| a. | Example reports by auditors are included in Auditing Bulletin 2 (AudB 2) "Insurance Companies Ordinance - Auditors' reports issued to the Third Schedule". |
| b. | Commencing from the financial year ended on or after 31 December 2003, insurers authorized to carry on long term business in or from Hong Kong are required to submit to the IA specific information annually in Forms HKL1, HKL2 and HKL3 for their "Hong Kong long term insurance business" within 4 months after the close of its financial year. In respect to Form HKL1, auditors are required to report on the Form. An example report by auditors on Form HKL1, which is prepared in accordance with the Standards on Assurance Engagements, has been prepared in consultation with the IA. |
(B) Example report by the auditors on annual return on employees' compensation gross premium (revised on 13/12/05)
The Government has entered into agreement with some authorized insurers for the provision of facility covering terrorism risk in respect of employees' compensation insurance business (Agreement).
Under the Agreement, the insurer is required to pay a monthly charge to the Government based on the gross premium in respect of employees' compensation business written. An annual return together with a report by auditors are required to be submitted to the Insurance Authority (IA) within four months after the end of each financial year on the amounts of gross premium for the financial year and the charge payable thereon to the Government.
The Example Report by Auditors, which has been prepared in consultation with the IA, was revised on 13 December 2005.
(C) Example report by the auditors on the calculation of the Fund Expense Ratio
Under the Code on Disclosure For MPF Investment Funds issued by the Mandatory Provident Fund Schemes Authority (MPFA) in June 2004, the following should be noted by auditors involved with such work:
It has been agreed between the Institute and the MPFA that the requirement under section E4.2 is an agreed-upon procedures engagement in accordance with HKSRS 4400 ˇ§Engagements To Perform Agreed-upon Procedures Regarding Financial Informationˇ¨ issued by the Institute.
An example report by the auditors on the requirement of section E4.2 of the Code has been developed by the Institute in consultation with the MPFA .Office
of the Commissioner of Insurance
Mandatory Provident Fund Schemes Authority