PIN 5.3 PIN 5.3 Basic principles of recognition and measurement
PIN 5.3.1 PIN 5.3.1
Except where this chapter provides otherwise, the assets and liabilities of an
Insurermust be recognised in accordance with a basis of accounting set out in PIN Rule 5.3.2, and the values attributed to those assets and liabilities must be measured in accordance with that basis of accounting.
PIN 5.3.1 Guidance
The exceptions provided in this chapter relate to the following:a. specific
Rulesin respect of certain assets and liabilities, intended to achieve a regulatory objective not achieved by application of either or both of the bases of accounting set out in PIN Rule 5.3.2;b. assets and liabilities that are not dealt with in either or both of the bases of accounting set out in PIN Rule 5.3.2; andc. the overriding power of the DFSA, set out in PIN Rule 5.1.6, to require an Insurerto adopt a particular measurement for a specific asset or liability.
The basis of accounting adopted by an
Insurerfor the purposes of PIN Rule 5.3.1 must be:(a) in the case of a Takaful Insurer, the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions; or(b) in any other case, International Financial Reporting Standards.
Where the valuation of an asset or liability is dependent upon the adoption of assumptions or the adoption of a calculation method, any change in the assumptions or methods adopted must be reflected immediately in the value attributed to the asset or liability concerned. The recognition of the effects of changes in assumptions or methods may not be deferred to future reporting periods.