Insurance Act No.54 of 2005 - Vanuatu Financial Services ...

45 Accounting and auditing requirements(1) A licensee must:(a)(b)(c)maintain full and proper accounting records for its licensed business on acontinual basis; andbring the accounting records up to date quarterly; andprepare annual, financial statements for each financial year reflecting, withsuitable particulars, the financial position of the business as at the last day of thefinancial year, and the results of the operations and cash flow information for thefinancial year.(2) A licensee that is an insurer or insurance broker must cause its financial statements to beaudited and reported on by its appointed auditor, to produce:(a)(b)(c)an audited balance sheet, including any necessary notes or attached documents;andan audited income statement, including any necessary notes or attacheddocuments; andan audited statement of the source and application of funds.(3) The financial statements must:(a)(b)(c)be prepared in conformity with International Accounting Standards; andfairly represent the state of affairs of the licensee’s business; andrefer to any material matter which has affected or is likely to affect the licensee’sfinancial affairs.(4) The insurer and insurance broker must lodge the audited financial statements with theCommission not later than six months after the end of the licensee’s financial year orsuch longer period as may be permitted by the Commission.(5) The insurer and insurance broker must maintain records in accordance with paragraphs(1)(a) and (1)(b) of money and assets the licensee holds on behalf of customers and, atthe same time as lodging its financial statements, lodge a report by its auditor, stating:(a)the amount of money and assets held at the end of the financial year on behalf ofcustomers; and40