Documente Academic
Documente Profesional
Documente Cultură
Nature of donation
Donation in takaful contract is a mutual act of good
Donation versus
Participation
principle of donation for the policyholders
principle of participation for the shareholders.
Participation involves the contract of investment.
The Islamic jurists viewed that the takaful operator
Existence (Recognition)
The existence of a valid contract is necessary
before a transaction can be recognized.
When the contract is duly concluded and
signed, all contractual conditions must be
followed to render the transaction valid and
existing.
Lawful(Recognition)
The recognition process would also take into
consideration the lawfulness of the economic
activities.
Revenue is not recognized if the activity is
Measurable (measurement)
Precise measurement is an essential condition
to avoid unlawful transactions.
Hence the scale and basis of measurement
should be reflective of the real economic
condition.
Deliverable (Recognition & measurement)
Deliverable goods are also an essential
condition to avoid gharar and timing of
recognition and ability to measure will also take
into account this condition.
Equitable (Distribution)
Equitable in dealings between the contracting
parties include the manner of distribution
between the Takaful operators and participants.
It involves the determination of reasonable
rates of returns from the contracted profit
sharing ratio.
Accountability (Disclosure & Presentation)
An essential mechanism to attain accountability
is through proper and adequate disclosure and
reporting to the other party/ies involved in the
transaction.
Charity Funds.
Notes to Financial Statements
Specific Disclosures
Unusual supervisory restrictions
Earnings or expenditure prohibited by Shariah.
Concentration of Asset Risks (Segment).
Amounts recoverable related to claims from
Presentation of Statement of
Financial Position
Assets
Liabilities + Policyholders
equity + owners equity
Outstanding claims
Unearned contributions
Reinsurance balances
Dividends payable
Other liabilities
Capital
Reserves
Presentation of Policyholders
revenue & Expenses
Insurance revenue
Earned contributions
Gross contributions (less) reinsurers shares
Net retained contributions
(less) changes in unearned contributions
Reinsurance commissions
Insurance expenses
(paid claims recovered claims) +
(outstanding claims recovered claims) +
Remuneration of owners equity [fees]
Net surplus from insurance operations
Net investment income
Surplus or Revenue (over) expenses
Statement of policyholders
surplus(deficit)
Add (less)
Less
Beginning balance
Xxxxxxxx
Surplus (deficit)for
the year
Xxxxxxxxx
Xxxxxxxxx
Distribution to
policyholders
(xxxxxxxxx)
Ending residual
balance
Xxxxxxxxx
Policyholders
that have not
claimed
Surplu
s
Policyholders
that do not
claim or
claimless
than their
contribution
Policyholders
and
shareholders
Reserves of
polycyholders
borrow from
shareholders
funds or
other funds
Defici
t
increase
future
premium
contribution
of
policyholders
on pro-rata
basis
Requests
policyholders
to meet
deficit prorata
operations.
among policyholders.
This disclosure of varying allocation bases functions to
assist in decision making and fair reporting.
Any failure to disclose the process of the allocation may
cause other problems among the policyholders and
shareholders in the future.