Section B:

Question 5:

Careful Insurers Company receives 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 Company will determine whether to accept this business and if yes on what terms.

Your answer should include a detailed justification for your decision.

Question 6:

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