ACCTSPTRANS IC and ABOT

Question Answer
FROM STUDENT 1:
1. PFRS 4 says that insurance contracts should Be covered by existing accounting policies during
phase one
2. An insurance contract can contain both deposit Each payment by the cedent is accounted for as a
and insurance elements. Effectively this loan advanced and as a payment for insurance cover
constitutes a loan by the cedent that will be
repaid in the future, PFRS 4 requires that
3. This method measures the unearned premium Fixed percentage method
reserve by applying a specified percentage
4. PFRS 4 does not apply to Employer’s assets and liabilities under employee
benefits plan
5. It is an insurer which accepts part of a risk from Reinsurer
ceding insurer by way of reinsurance
6. It arises when the unearned premium reserve is Premium deficiency
less than the anticipated
7. It is defined as a cedant’s (policyholder under a Reinsurance Assets
reinsurance contract) net contractual rights under
a reinsurance contract
8. To unbundle a contract, an insurer component Apply PFRS 4 to the insurance component and apply
shall PFRS 9 to deposit
9. It is defined as a form of reinsurance offered on Facultative Insurance
an individual risk basis
10. It is defined as “a reinsurance of reinsurance Retrocession
assumed where the reinsurer will retrocede
11. It is a type of service concession arrangement Intangible Asset
whereby the operator receives a right
12. It is an arrangement whereby the government or Service Concession
other public sector body contracts with a private
operator to develop
13. Which of the following statement(s) is (are) false: I (one)only
I. PFRS 12 specifies that the infrastructure be
recognized as property, plant, and equipment
II. The operator has access to operate the
infrastructure
III. Under the terms of the contractual
arrangement, the operator acts as a service
provider
14. According to PFRIC 12, service concession Intangible Asset
agreement, the infrastructure asset shall be
recognized
15. In accordance with PAS 23, borrowing costs Asset
attributable to the arrangement is the period
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16. The PFRIC applies only if: Both I and II
I. The grantor controls or regulates what services
the operator must provide
II. The grantor control – through ownership,
beneficial entitlement or otherwise – any
significant
17. Under a financial asset model of service Either specific/determinable amount or the shortfall
concession arrangement, the operator has an between amounts received
unconditional right
18. To the extend it has an unconditional contractual A financial asset
right to receive cash or another asset
19. The program intends to provide the public with Service Concession Arrangement
adequate, safe, efficient, reliable, and
reasonably-priced
20. The operator has an unconditional right to receive Specified or determinable amounts (pinakamahaba)
cash if the grantor
Question Answer
FROM STUDENT 2:
1. This method computes the unearned premiums, The 1/8th method
policy by policy, on a pro-rata basis in respect of
the unexpired periods
2. It arises when the unearned premium reserves is Premium deficiency
less than the anticipated claims
3. This method measures the unearned premium Fixed percentage method
reserve by applying a specified percentage to the
total premium written
4. The term “unbundle” is defined as Account for the components of a contract as if they
were separate
5. It is defined as “ a reinsurer of reinsurance Ceding Insurer
assumed where the reinsurer will retrocede a
whole or a part of the risk
6. Which of the following accounting practices has Catastrophe Accounting
been outlawed by PFRS no. 4
7. This method represents a practical simplification The 1/365th method
of the time apportionment method but can only be
applied for insurance policies which have a term
of one yearti
8. In this reinsurance arrangement, premium and Outward reinsurance
commission shall be accounted for in the same
accounting period as the original policy to which
the reinsurance relates
9. It is defined as a cedant’s (policy holder under a Reinsurance Asset
reinsurance contract) net contractual rights under
a reinsurance contract
10. PFRS 4 permits an insurer to change its All of the choices
accounting policies for insurance contracts
11. To the extent that it has an unconditional right to A financial Asset
receive cash or another asset from
12. In some case, the grantor may provide other Assets of the operator measures at fair value on
items to the service concession operator. initial operation
13. The operator of the BOT arrangement shall PFRS 15
recognize and measure revenue
14. For providing the construction or upgrade A financial asset or an intangible asset
services, the consideration received or receivable
by the operator shall be recognized
15. The operator shall account for revenue and costs PFRS 15
relating to operation services
16. To the extent that is receives a right (a license) to An intangible asset
charge the users of the public service. A right to
charge of the public service is not an
unconditional right to receive cash
17. In accordance with PAS 23, borrowing costs Expense
attributable during the construction phase
18. A feature of service concession arrangement is The grantor is responsible for at least some of the
the public service nature of the obligation management of the infrastructure and related
undertaken by the operator services
19. The program intends to provide the public with Service Concession Arrangement
adequate, safe efficient, reliable, and reasonably-
priced infrastructure and development facilities
20. The arrangement is governed by a contract A “build-operate-transfer” (BOT) arrangement, a
between the operator and the government (the “rehabilitate-operate-transfer” (ROT) arrangement
grantor) that sets out performance standards,
mechanisms for adjusting prices or rates
Question Answer
FROM STUDENT 3:
1. It arises when the unearned premium reserve is Premium Deficiency
less than
2. To unbundle a contract, an insurer component Apply PFRS 4 to the insurance component and apply
PFRS 9 to deposit
3. Identify which of the following are insurance A catastrophe bond in which principal interest
contracts payments
4. It is a reinsurance whereby the ceding insurer Non-Proportional Reinsurance
undertakes payment of all losses up to a pre-
agreed amount
5. Identify which of the following are insurance A contract that requires specified payments to
contracts reimburse the holder for a loss it incurs
6. It is a contract that requires the issue to make Financial Guarantee
specified payments to reimburse the holder for a
loss it incurs because a specified debtor
7. It is an insurer which accepts part of a risk from Reinsurer
the ceding insurer
8. Identify which of the following are insurance Compensation in cash or in kind to contract holders
contracts for losses suffered from travelling
9. PFRS 4 says that insurance contracts Be covered by existing accounting policies during
phase one
10. PFRS 4 does not apply to Product warranties which are covered by PFRS 15
and PAS 37
11. The terms of the contractual arrangement may I or II
require the operator
I. To maintain then infrastructure to a
specified level of serviceability
II. To restore the infrastructure to a specified
condition
12. In construction or upgrade services, the operator Over-time/Stage of Completion
shall account for revenue and costs relating to
construction or upgrade services in accordance
with PFRS 15
13. Which of the following statement(s) is (are) false I (one) only
I. PFRIC 12 specifies that the infrastructure
be recognized as property, plant, and
equipment
II. The operator has access to operate the
infrastructure to provide public service
III. Under the terms of the contractual
arrangement, the operator acts as a
service provider
14. Under a financial asset model of service Either specific/determinable amounts or the shortfall
concession arrangement, the operator has as between amounts received from the users
unconditional right to receive cash
15. It is an arrangement whereby the government or Service Concession
other public sector body contracts with a private
operator to develop or upgrade
16. The operator has an unconditional right to receive Specified or determinable (pinakamahaba)
cash if the grantor contractually guarantees
17. The operator shall account for revenue and costs PFRS 15
relating to operation services
18. In accordance with PAS 23, borrowing costs Expense
attributable during the construction phase
19. The PFRIC 12 applies only if: Both I and II
I. The grantor controls or regulates what
services the operator must provide
II. The grantor controls – through ownership,
beneficial entitlement or otherwise – any
significant residual interest
20. Program of the Philippine government guided by Service Concession Arrangement
the principles of transparency,
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