80.2K

Verified Solution

Link Copied!

On 30 June 2017, Festival Insurance Company Ltd had investments 'integral to its general insurance activities' with a fair value of $175 million. During the year ended 30 June 2017, Festival: (a) received dividends, interest and rental of $17 million from its investments; (b) acquired new investments at a cost of $35 million; and (c) sold investments carried in the accounts at $36 million for $41 million. On 30 June 2018, Festival estimated that rental and interest receivable from investments totalled $3 million and that the fair value of the investment portfolio was $180 million Required (a) Record these events in accordance with the requirements of AASB 1023. (b) Determine the amount of income from assets backing general insurance liabilities for the year ended 30 June 2018. (109 On 30 June 2017, Festival Insurance Company Ltd had investments 'integral to its general insurance activities' with a fair value of $175 million. During the year ended 30 June 2017, Festival: (a) received dividends, interest and rental of $17 million from its investments; (b) acquired new investments at a cost of $35 million; and (c) sold investments carried in the accounts at $36 million for $41 million. On 30 June 2018, Festival estimated that rental and interest receivable from investments totalled $3 million and that the fair value of the investment portfolio was $180 million Required (a) Record these events in accordance with the requirements of AASB 1023. (b) Determine the amount of income from assets backing general insurance liabilities for the year ended 30 June 2018. (109

Answer & Explanation Solved by verified expert

See Answer