Question 1:

Compare and contrast the financial statements of a bank and an insurance company. (To do this please download the financial statements of a bank and an insurance company. Please limit the comparison to the Income statement and the statement of financial position. Though it is preferred to use Omani businesses you may do the comparison using global businesses if you prefer.)

2Which principle of insurance is highlighted in the following statement? Explain in brief?

a. Insurer is not liable for any uninsured causes/perils

b. Insured should not make any profit in any way or as a consequence of loss.

3Assess the loan loss provision requirements provided in CBO Circular BM 977 dated September 25, 2004

4Explain the IFRS 9 three-stage model (general model) for impairment based on changes in credit quality since initial recognition

5

Careful Insurers SAOG receive a proposal for insuring a fleet of 100 vehicles consisting of cars, pick-up vans and tourist buses of different ages belonging to Tour Oman a leading travel agency engaged in organizing package tours within Oman. Explain how Careful Insurers SAOG will determine whether to accept this business and if yes on what terms.

Your answer should include detailed justification for your decision

6Summarize the key changes introduced by IFRS 16 from the perspective of the lessee and how these impact on their financial reporting.