Overview
Insurance Accounting | Student’s Name: |
Course Code: ACCT 424 | Student’s ID Number: |
Semester: First | CRN: 13971 |
Academic Year: 1447 H (2025-26) |
For Instructor’s Use only
Instructor’s Name: Habiba Moabber | |
Students’ Grade: /15 | Level of Marks: High/Middle/Low |
Instructions – PLEASE READ THEM CAREFULLY
• THE ASSIGNMENT MUST BE SUBMITTED ON BLACKBOARD (WORD FORMAT ONLY) VIA ALLOCATED FOLDER.
• ASSIGNMENTS SUBMITTED THROUGH EMAIL WILL NOT BE ACCEPTED.
• STUDENTS ARE ADVISED TO MAKE THEIRWORK CLEAR AND WELL PRESENTED, MARKS MAY BE REDUCED FOR POOR PRESENTATION. THIS INCLUDES FILLING YOUR INFORMATION ON THE COVER PAGE.
• STUDENTS MUST MENTION QUESTION NUMBER CLEARLY IN THEIR ANSWER.
• LATE SUBMISSION WILL NOT BE ACCEPTED.
• Avoid plagiarism, the work should be in your ownwords, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
• All answers must be typed usingTimes New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism.
• Submissions without this cover page will NOT be accepted.
Assignment Questions:(Marks 15)
Q1. Explain what is meant by capitalized costs and describe the substantive audit procedures that an auditor may perform to verify the appropriateness of capitalized costs.(5 Marks)(Learning Module 9, Chapter 8)
Note: Provideanswers with suitable examples, and they should not be copied from any sources. Answer:
Q2. a) Explain the key financial reporting requirements applicable to Takaful operators.What are the unique disclosures required under Takaful principles?(5 Marks)(Learning Module 10, AAGTO Chapter 3)
Note: Provide answers with suitable examples, and they should not be copied from any sources.
Anwer:
b) From the following information, prepare accounting entries for general takaful products:
Contribution from new participantsSAR 10,000
Contribution renewal participantsSAR 8,000
Advanced contribution from new participantsSAR 5,000
Answer:
Q3. Alpha Company has the following financial data:(5 Marks)(Learning Module 11, AAGTO Chapter 4)
Particulars | Amounts (SAR) |
Total Profit for the Year | 320,000 |
General Takaful Assets (Year 2015) | 620,000 |
General Takaful Assets (Year 2016) | 650,000 |
Cash | 200,000 |
Short-term Investment | 205,000 |
Short term liabilities | 200,000 |
Underwriting Surplus Distributable to Participants/Participants' Share of Profit | 235,000 |
Gross Contribution | 455,000 |
Net Contribution | 365,000 |
Wakalah Fee | 105,000 |
Commission Paid | 90,000 |
Management Expense | 95,000 |
Net Claim Incurred | 265,000 |
Earned Contribution | 340,000 |
Calculate:
a) Return on Assets
b) Quick Liquidity
c) Surplus Distribution Ratio
d) Expense Ratio
e) Claims Ratio
Answer: