Účtovná uzávierka 2004
Účtovná uzávierka 2004
Účtovná uzávierka 2004
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Notes as at 31 December <strong>2004</strong><br />
c) Acquisition costs and deferred acquisition costs<br />
Acquisition costs include all direct and indirect costs arising from the conclusion of insurance policies. Acquisition costs incurred<br />
in the current accounting period, but which relate to revenue of future accounting periods are deferred.<br />
Non-life insurance<br />
Deferred acquisition costs from non-life insurance are calculated from total acquisition costs and are determined in the same ratio<br />
as unearned premium reserve.<br />
Life insurance<br />
Acquisition costs in life insurance are deferred through the Zillmer method and through the capitalization of temporary negative<br />
balances of technical reserves.<br />
d) Technical reserves<br />
The Company creates technical reserves in order to ensure its ability to pay its liabilities arising from insurance and reinsurance.<br />
This includes reserves as per §§ 22 – 28 of Act no. 95/2002 Coll.<br />
Notes<br />
81<br />
When creating reserves, the Company follows general principles, i.e. reserves are used only for the purpose for which they were<br />
created, and the creation is booked within costs. If the reasons for which the reserves were created no longer exist, they are<br />
released into revenues. The closing balances of reserves are transferred into the next accounting period and are reviewed to<br />
ensure that they are appropriate and reasonable.<br />
Unearned premium reserve<br />
An unearned premium reserve is created for both life (regularly paid) and non-life insurance from the part of written premium that<br />
relates to future accounting periods. As well as in previous accounting periods, in <strong>2004</strong> the unearned premium reserve was<br />
calculated for both life and non-life insurance by using the “365-days” method, as permitted under the current regulation on the<br />
creation and use of reserves. The exemption to this are single paid life insurance contracts, where the whole amount of the<br />
premium is considered to be earned premium and premium covering the risks and the costs of future periods are included in the<br />
life reserve, so that no unearned premium reserve is created. In instances where the single paid policy includes also an accident<br />
rider, the methodology for single paid accident policies (life-insurance) applies to the creation of reserve for the accident part. For<br />
the “OPU” product (personal insurance account) and IÎP, an unearned premium reserve is not created, because all premiums<br />
recognized are considered to be earned premiums.
Change language