PFN PIN 6.5.5 PFN PIN 6.5.5
An Insurer’s current
Investmentsare reported at item 3. This item does not include Derivativesused to hedge Investmentsreported here. Hedging Derivativesare included in item 5. Insurersmust have regard to the following principles when completing item 3:(a) Investmentsthat are strategic in nature must be assumed to be non-current, and must be reported at item 8 or item 9; and(b) Depositsthat are of the nature of Security Deposits, or retentions under contracts, are not reported at item 3.1 but are reported as receivables.
PFN PIN 6.5.5 Guidance
Investments that take the form of mudaraba or musharaka contracts must be reported in accordance with their nature. A contract that takes the form of a collective
Investment, where the Insureris one of several investors providing capital to a mudarib who then provides the capital to the entrepreneur, should be reported as a collective Investment(where it does not fall to be reported as a Profit Sharing InvestmentAccount). Where however, a contract of mudaraba or musharaka is entered into by an Insureras an Investmentdirectly with an entrepreneur, or through a mudarib with the Insureras sole rab ul mal, the Investmentshould be reported as a contract of mudaraba or musharaka as appropriate.
Derived from DFSA RM11/2004 (Made 16th September 2004). [VER1/09-04]