On June 1 2019 Kriss Storey

Posted By Admin @ Mar 01, 2022

Title: Statement of Purpose for the Kuwait insurance company

Type: Discussion

Subject: Business Communications


The selected company in the report is the Kuwait insurance company that is listed in the Kuwait Stock exchange. The analysis is conducted in different dimensions, including basic measurement that would be used in the making of a statement of financial position (market value, historical cost, present value, and NRV). These terms could be explained in as followings

• Fair value is termed as the current market value of certain assets or liability, which is referred as estimated price at which an asset could be sold or settled to pay any liability, keeping in view that current market situation, transections, and third party in the business.

• Historical cost is a concept which means that assets should be valued based on the purchase price or paid price for that commodity. Assets are required to record in balance sheet as historical cost.

• Par value is a dollar amount that is assigned as share price in any corporation.

• Net realizable value is considered as an estimated sale price of the goods minus disposal cost of the assets.

• The present value is considered as the current value of the asset for which cash could get in the market.

• Market value is the price of asset for which an asset could be bringing in the market on given value.

All these terms are used in the financial statement, which is used in the financial statement to know the worth of business as these are the values on which assets and liabilities of the business are recorded in the financial statement.

The other consideration is the financial position statement that was made according to the cash basis or on an actual basis. The review of Kuwait insurance company financial position statement S.A.K.P considers all amounts to comprehend the income items with total equality and liabilities, including expense, net profit, and revenues of the whole year. The statement of changes in the shareholder equity for each year considers comprehensive income for the year, treasury shares, and the dividend paid for each year. The recent report shows all amounts in Kuwaiti Dinars, for instance,

 Total Assets = 162, 088, 765 Equity and liabilities = 162, 088, 765

 Expenses = 22, 918,886 Revenue = 28, 860, 331,

            Comprehensive Income = 10, 083,491

The integral parts of the financial statement are comprehensive income for the year, and treasurer shares purchased (Kic-kw. com, 2014). The cash withdrawal from all of the managing activities that use the net profit for the year. The basic components of the cash flows for the year include net profit of the year from the income, depreciation, staff terminal benefits, finance expense, cash from the operating activities, payment of the staff terminal, and payment of board of directors. The statement of cash flow for Kuwait insurance company considers direct investment with cash through managing activities, high going profit from investing activities, enhancing the amount of profit from financing activities, and a net increase in the money and the frequencies that resembled the cash amount. The net increase in the cash and cash equivalent become equal to 6, 194, 226 in 2013, and 592,071 in 2014. As by the exceptional values of the international finance reported company, the financial statement of the Kuwait insurance company was prepared by the issues that were aroused by the ordinance of (IFRS) and Accounting standards board (IASB). The significant accounting policies are considered in the report. The company has assessed all the financial statements that are applied in the company.