statement of financial accounting standard 36

indonesian institute of accountants

accounting for life insurance

1
 statement of financial accounting standard 36
accounting for life insurance
contents
paragraph
foreword
foreword from central committee of
the indonesian institute of accountants
foreword from the ministry of finance
foreword from the indonesian insurance council
introduction 01 - 20
characteristics of the life insurance industry 02
scope and application 03 - 05
definition 06 - 20
presentation of financial statements 21 - 29
balance sheet 21 - 25
income statement 26 - 28
notes to the financial statements 29
revenue 30 - 32
short term premium contract 30
long term premium contract 31
other revenue 32
expenses 33 - 36
claim expenses 33 - 35
acquisition expenses 36
assets 37 - 39
investments 38
reinsurance receivables 39
liabilities 40 - 44
liability for future policy benefit 41
estimation of claim liability 42
unearned premium 43
reinsurance liability 44
disclosure 45
effective date 46
attachments
samples of financial statements
1. balance sheet
2. income statement (single step)
3. statement of cash flows (direct method)
4. statement of cash flows (indirect method)

2
foreword

deregulation and de-bureaucratisation measures taken by the government

have given significant flexibility and opportunity to the public, including
insurance companies, to develop and play a greater role in the social and
economic life of this country.

faced with new challenges, insurance companies need to create a system

to improve the flow of their business activities, to manage and to maintain
their financial condition. one such system required is a financial
accounting standard for more informative, more accurate financial
statements of life insurance companies.

recognising this, the indonesian institute of accountants in cooperation

with the indonesian insurance council and the directorate of insurance-
ministry of finance, has developed an accounting standard for life
insurance industry.

this accounting standard is set (1) in the spirit of harmonising with

international financial standards, but (2) using as a reference official
accounting standards of modern countries such as fasb/fas of the u.s., (3)
considering the needs of public company financial statements and the
global stock exchange, (4) considering rules and regulations of the
insurance law, (5) considering opinions of the government, experts,
practitioners and watchers during setting process and public hearing, (6)
considering condition and culture of the indonesian business, (7) in the
spirit and in perspective of the macro economics.

this standard has been set based on the decision of the indonesian
institute of accountants. this standard is expected to (1) give protection to
the policy holders and the public, (2) build an insurance business which is
conservative, prudent and healthy, (3) make use of globally accepted
accounting technology in efforts to create a more prosperous indonesian
society.

accounting standard for life insurance is a new standard that requires the
participation of all parties to ensure the dissemination, comprehension,
application and future revisions of the standard.

the indonesian institute of accountants wish to thank to:

mr. drs. mar'ie muhammad minister of finance

mr. dr. ir. bambang subianto
institutions
mr. drs. sophar l. toruan, mpa
drs. kartomo wiryobroto
directorate general of financial
director of insurancer
director of supervisory of
accountants and appraisers

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4
the chairperson and members of the steering committee of the standard-
setting project, as follows:

1. chairperson : drs. sophar l. toruan, mpa

2. member : drs. kartomo wiryobroto
3. member : drs. murniati firman
4. member : drs. vjh boentaran
5. member : drs. jusuf halim
6. member : didi achdijat, fsai

the chairperson and members of the formulating team of the standard

setting project, as follows:

1. chairperson : drs. jan hoesada, mm

2. secretary : drs. firdaus djaelani, ma
3. member : drs. bambang heryanto
4. member : drs. brata antakusuma
5. member : drs. agust. sudjiono
6. member : didi adrianto hadrian
7. member : bambang sumantoro
8. member : drs. achmad wahidin
9. member : dr. nur indriantoro
10. member : drs. rusdy daryono
11. member : h. kasir iskandar, fsai
12. member : drs. warnedy, msc.
13. member : drs. ruchyat kosasih

the secretariat of the formulating team of the standard-setting project, as

follows:

1. agus prawoto, s.h., m.a.

2. ronny agandhi, mec.
3. darul dimasqy k, s.e.
4. agus suparto, s.e.
5. fatati sriwahyuni, s.e.
6. fitri amanda, s.e., m.b.a.
7. asep rahmansyah, s.e.
8. salusra satria, s.e., m.a.f.

all sponsors, information sources, and attendants of the public hearing of

the concept publication of the accounting standard of life insurance.
without their prayers, supports, commitments, spirits, and attention of the
parties stated above, this accounting standard would not have been
completed.

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by the blessing of the almighty god, this accounting standard is approved
by the central committee of the indonesian institute of accountants.

jakarta, april 26 1996

the central committee of

the indonesian institute of
accountants

drs. soedarjono
chairperson

6
statement of financial accounting standard 36, accounting for life
insurance, was adopted by a meeting of the indonesian accounting
principles committee on march 22, 1996 and was ratifited by the national
council of the indonesian institute of accountants on april 26, 1996.

jakarta, april 26, 1996

national council
indonesian accounting principles committee

drs. jusuf halim chairperson

drs. ipg ary suta, mba vice-
chairperson
drs. mirza mochtar, mba secretary
dr. wahjudi prakarsa member
dr. katjep k. abdoelkadir member
drs. jan hoesada, ak., mm member
drs. hein g. surjaatmadja member
drs. sobo sitorus member
drs. timoty r. marnandus, mba member
drs. mirawati sudjono, msc member
dr. nur indrianto member
drs. rusdy daryono member
dra. siti ch. fadjriah member
drs. osman sitorus member
dra. istini t. siddharta member
drs. jusuf wibisana member
dra. yosefa sayekti member

7
 speech from
the director general of financial institutions
ministry of finance

we thank to god, for the legalisation of this financial accounting standard

for life insurance companies.

current developments in the global economy has placed the service

industry in a strategic position. the increase in the service industry
including insurance, has given significant contribution to the economic
growth of a country.

in response to the increase in the trade of insurance services, requiring

similar perceptions and interpretations to all insurance business
practitioners, a financial accounting standard for life insurance is needed.

by standardising financial accounting and reporting we hope that all

parties, involved in the insurance industry, will be able to use the standard
as a guide when setting up the accounting system, as a reference in
reviewing life insurance companies as well as in decision-making process.

last but not least, we hope that this financial accounting standard,
developed in cooperation with the indonesian insurance industry and the
indonesian institute of accountants, will be of benefit to all of us by
assisting developments in the accounting profession and in the accounting
systems of life insurance companies.

jakarta, april 26 1996

director general of financial

institutions

dr. ir. bambang subianto

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 speech from
the general chairperson of indonesian insurance council
on the approvement of financial accounting standard 36 on life
insurance accounting

we all believe that a standard financial accounting procedure is needed in

every industry, including the insurance industry.

the application of different accounting systems in accounting for insurance

companies makes it difficult to compare companies. in addition, insurance
laws and regulations require the application of a standard accounting
system.

for this purpose, an 'exposure draft' for financial accounting standard 36,
accounting for life insurance companies, has been produced in cooperation
between the indonesian institute of accountants and indonesian insurance
council (formalised by an agreement dated june 1, 1995). further, the
central committee of the indonesian institute of accountants has legalised
that draft so that now we have the statement of financial accounting
standard for life insurance companies.

we hope that members of the indonesian insurance council adjust their

financial accounting procedure with this financial accounting standard.

we would like to thank to the central committee of the indonesian institute

of accountants and its members for their assistance to the indonesian
insurance council in preparing both statement of financial accounting
standard which will benefit development in indonesia's insurance industry.

we also hope that this cooperation will continue in the future.

jakarta, april 26 1996

the indonesian insurance council

b. munir sjamsoeddin
general chairperson

9
psak 36 accounting for life insurance

introduction

01 the insurance industry grows in line with the growth of the business
world. the rise of the insurance industry is a natural consequence and
uavoidable in a situation in whch many business people and members of
the public have the inclination to avoid or transfer the risks of financial
loss. the insurance industry assumes or insures part of those risks in return
for insurance premiums from the entrepreneur or the insured.

the type of risk insured under life insurance includes death, accidents and
disabilities, and loss of ability to earn income. the insurance industry will
insure all or part of the financial risk suffered by the insured resulting from
events or situations that have been insured for during the period of the
insurance contract.

the life insurance business has specific characteristics that make

insurance transaction and insurance accounting unique. the premium is
received or known, while the claim or insurance benefit has not arisen and
it is uncertain as to occurrencefor several products, the insurance claims
are surrounded by uncertainties as to the ccurrence as wll as amounts.

this statement addresses the accounting treatment for transactions which

are specifically related to the life insurance industry. other general matters
or matters that are not addressed in this statement should be treated in
accordance with generally accepted accounting principles.

characteristics of the life insurance industry

02 the business of life insurance has the following characteristics:

- life insurance bsiness represent a system of protection against risk of

financial loss resulting from the death of an individual as well as an
effort to accumulated funds from the general public.

- premium represents revenue to the insurance enterprise, in addition

to return on investments which constitutes an activity that cannot be
separated in the life insurance business.

- the main function of investments is to meet all benefit obligations due

to the policyholders.

- financial liabilities of life insurance enterprises are affected by

uncertainty as to occurrence of an event, which influences the
presentation of the financial statements.

- financial statements are influenced by estimates, such as estimates

of the liability for the future policy benefits which is based on
actuarial calculations, estimates of unearned premium income,

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psak 36 accounting for life insurance

estimates of the amount of the total cllaim liability, and estimates of

the incurred but not reported claims.

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psak 36 accounting for life insurance

- policyholders pay the insurance premiums or deposits to the

insurance enterprise before the insured event occurs. these payments
represent revenues to the insurance enterprise. when the i nsurance
contract is agreed, the insurance enterprise does not usually know
whether or not it will pay the insurance benefits, what the amount of
payment is going to be, and if payment is made when it should be
made. this will influence the issues if revenue recognition and the
measurement of expenses.

- life insurance enterprises should meet the financial health criteria in

accordance with regulations in the insurance industry, such as
solvency margin.

scope and application

03 a life insurance enterprise can take one of the following legal forms:
a corporation, a cooperaive, alimited liability enterprise or a joint venture.

04 this statement is intended to be applied in the presentation of the

financial statements of life insurance enterprises. any circumstances not
addressed by this statement should be accounted for in accordance with
generally accepted accounting principles. when the enterprise’s main
transactions are related to life insurance transactions, this statement
should be applied.

05 the life insurance business is influenced by rules and regulations

which may differ from generally accepted accounting principles. financial
statements presented in accordance with this statement are not intended
to comply with specific rules

definition

06 a life insurance contract is classified into short term contract or long

term contract depending whether the contract will be in efffect for a
certain period of time. the factors which should be considered when
determining whether the contract is expected to be in effect for a certain
period of time are:

a. short term contract. in this type of contract, the amount of

premium charged, amount of coverage given or other policy terms
can be amended by the insurance enterprise at the policy renewal
date.

b. long term contract. this contract is usually irrevocable, renewal is

guaranteed and other terms caonnot be amended unilaterally. long
term contracts also include service or other functions performed by
insurance enterprises

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psak 36 accounting for life insurance

07 subordinated liability is a loan from shareholders or other parties,

which in the event of liquidation, is settled after the payment of other
liabilities. this liability is intended to improve the solvency margin.

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psak 36 accounting for life insurance

08 solvency margin is a measurement used to assess an insurance

company’s ability in fulfilling its liabilities to the policyholders, which is
reflected by comparison between allowable net value and the company’s
liabilities.

09 grace period is a period in which the policy is in effect, but the

policyholders have not been required to pay the premiums at the date
they are supposedly due.

10 gross premium is a premium received from policy holder.

11 premium receivable is a claim of premium to the policyhoder

which is due and is still within the grace period

12 unearned premium is a part of the gross premium which has not

been recognised as revenue since the period covered extends beyond the
end of the current period.

13 reinsurance premium is a part of the gross permium which is due

to the reinsurer based on the reinsurance agreement.

14 reinsurance receivable is a claim to the reinsurer which arises

from reinsurance transcations, in relation to the receipt of reinsurance
premium, reinsurance commission, profit commission and reinsurance
claim.

15 reinsurance payable is a liablility that arises from reinsurance

transactions in relation to the charging or reinsurance premium,
reinsurance commission, profit commission and reinsurance claim.

16 claim and insurance benefit are expenses which consist of:

claims and insurance benefits where payment is based on the occurrence
of an insured event. such claims and benefits include dath claim, disability
claim and health insurance claim; claims and benefits due on maturity
date; and claims and benefits due to surrender of the contract.

17 reinsurance claim is part of the claim that becomes a liability of

the reinsurer in accordance with the reinsurance agreement.

18 liability for future policy benefit (in insurance technical term it is

called a premium reserve) is an obligation to the policyholders that
concerns the premium that is due, including grace period premium.

19 estimated of claim liability is claim where the amount and/or the

responsibility has not been determined, including the incurred but not
reported claims.

20 acquisition cost are costs related to new insurance contracts or

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psak 36 accounting for life insurance

renewals, including commissions and other expenses (such as salaries of

underwiting employees).

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psak 36 accounting for life insurance

presentation of financial statements

balance sheet

21 in presenting the balance sheet, assets and liabilities are not

classified into current or non-current items, but emphasis on the
investment accounts and liabilities to policy holders accounts. in this
manner, the financial statements reflect a company’s ability to fulfil its
obligations to the policy holders.

22 assets are presented by listing the investment accounts first,

followed by other asset accounts. other asset accounts are presented in
the order of liquidity.

23 liabilities are presented by listing “liability to the policy holders”

account first, followed by other liabilities. other liabilities are presented in
order of maturity.

24 subordinated liabilities, if any, are presented after other liabilities

and before equity.

25 equity is presented in compliance with the generally accepted

accounting principles.

income statement

26 income statements are presented using the single step method.

27 premium income is in a manner reflecting the amount the gross

premium, reinsurance premium, and change in unearned premium
income. reinsurance premium is presented as a reduction of gross
premium.

28 investment income is presented by deducting direct investment

costs from investment revenue. gain (loss) from the sale of investment,
and foreign exchange differences which relate to the investment is
presented as a part of the investment income.

notes to financial statements

29 notes to the financial statements include disclosures as mandated

by the generally accepted accounting principle, except as stated otherwise
in paragraph 45.

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psak 36 accounting for life insurance

revenue

short term contract premium

30 short term contracts premium (some type of credit life insurance,

such as credit life insurance) is recognised as revenue during the contract
period in proportion to the amount of insurance coverage. if the risk period
is significantly different from the contract period, the premium is
recognised as revenue over the risk period in proportion to the insurance
coverage. as a reslut, premium is recongnised as income on a straight line
basis over the contract period (or the risk period, if different), unless the
insurance coverage declines in accordance with a predetermined
schedule.

long term premium contract

31 long term contracts premium (whole life contracts and guaranteed

renewable term life contracts) are recognised as income from the
policyholders when the policy is come due. the obligation for costs
expected to arise in relation to the contract is recognised during current
period and the renewal period. the present value of estimated future
policy benefit which will be paid to the policyholder or their
representatives, less the present value of estimated premium which will be
received (liability for future policy benefits), is recognised at the time the
premium income is recognised. these estimates are based on assumptions
such as expected investment income, mortality, morbidity, termination
and expenses determined at the time the insurance contract was signed.
other income

32 reinsurance commission and reinsurance profit commission is

recognised as other income.

expenses

claim expenses

33 claims include settled claims, outstanding claims and claims incurred

but not reported.

34 the amount of claims outstanding, including claims incurred but not

reported, are calculated based on an estimate the claim liability. changes
in the amount of estimation of claim liability, as a result of further
reviewing process and differences between the amount of claim estimation
and claim actually paid, are recognised as additions to or deductions from
expenses in the income statement for the period such changes occur.

35 reinsurance claims are recognised as a deduction from claim

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psak 36 accounting for life insurance

expenses in the period where the claim expense is recognised.

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psak 36 accounting for life insurance

acquisition costs

36 acquisition costs are allocated using actuarial calculation since the

liability for future policy benefits uses the net level premium method.

assets

37 asset accounts are recorded in accordance with generally accepted

accounting principles except specifically stated in this statement.

investments

38 accounting treatment for investments should be in accordance with

sfas no. 13, accounting for investments, and sfas no. 15, accounting for
investment in associates, except for marketable securities where the
accounting treatment should be as follows:

1. debt securities that are intended to be held until maturity are stated
at acquisition cost, net of amortization of premium or discount. when
determining this amount, an enterprise should consider its
experienses relating to the sale and transfer of securities. an
enterprise cannot classify a debt security in this category if the
enterprise intends to hold the security only for an unspecified period.
therefore, debt securities cannot classified in this category if the
enterprise intends to sell the securities, for examole, to deal with the
following situations:

(a) there are changes in the market interest rate and changes
related to similar risks;
(b) there are liquidity needsthat arise;
(c) there are changes in the availability and alternative investment
returns;
(d) changes in foreign exchange risk.

2. debt and equity securities which are classified as trading securities

are stated at market value. trading in this case reflects active
purchases and sales and is often intended to abtain benefit from short
term price differences. equity securities classified under this category
are those for which fair values can be determined, that is when there
is quotation of bid and ask prices available from a stock exchange
registered with bapepam. for debt securities with no quoted market
prices, the estomated fair values can be determined through various
techniques of price determination, such as discounted cash flow
analysis. unrealized gain or losses resulting from increase (decrease)
in market price is reported in the current year’s income statement.

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psak 36 accounting for life insurance

3. other debt and equity securities not included inthe above categories
are classified as “available for sale securities” and are stated at
market price. debt securities included in this category are securities
held for an unspecified period, for instance, the security will
eventually be sold to meet liquidity needs or as a part of a company’s
risk management strategy. unrealised gains (losses) as a result of
increases (decreases) in price are not recognised in income
statements but are separately presented in the equity component.

reinsurance receivables

39 reinsurance receivables cannot be offset against reinsurance

payables unless the reinsurance contract specially allow for the right of
offset. if a credit balance arise from the offsetting of the reinsurances
receivable against the reinsurance payable, the balance should be
presented in the liability section as reinsurance payale.

liabilities

40 liability accounts should be recorded in accordance with generally

accepted accounting principles, except they are specially specifically
stated in this standard.

liability for future policy benefit

41 liability for future policy benefit is stated in balance sheet based on

actuarial calculations.

estimatied claim liability

42 estimation of claim liability on short term contract, in particular for

health and accident insurance, are stated at the estimated amount based
on the insurance technical review.

unearned premium income

43 unearned premium income on short term health and accident

insurance contracts is calculated by applying the following rules:

a. in aggregate, without considering the end of the policy period, and

the mount calculated based on a certain percentage of the premium
retained for each insurance, or ;

b. individually for each of insurance and the amount of unearned

premium revenue is calculated in proportion to the amount of
protection given, during the insurance period or risk period, which is
consistent with the premium revenue realised as explained in

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psak 36 accounting for life insurance

paragraph 30.

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psak 36 accounting for life insurance

reinsurance payable

44 reinsurance payable cannot be offset against reinsurance receivable

unless the reinsurance contract specifically allows for the right of offset. if
a debit balance arises from the offsetting of the reinsurance receivable
and payable, this balance should presented in the asset section as
reinsurance receivable

disclosure

45 the following disclosures are required:

a. accounting policies on:

- premium revenue recognition and method of determining
liability for future policy benefits and unearned premium
income
- reinsurance transactions, including explanations of their
nature, objective and effect of such transaction on the
company’s operation;
- recognition of claim expenses and the method of determining
estimeted claims retained; and
- other important accounting policies as mandated by the
prevailing financial accounting standard.

b. deferred acquisition costs. disclosures in relation to the nature,

amount, type and expense allocation method used to amortise
deferred acquisition costs.

c. liability to the policy holders. details of liabilities to the policy holders

and explanation on method, assumption and system of calculation
used as a base to determine such liability.

d. subordinated loan. explanations on characteristics of subordinated

loan, interest rate and value of remaining loan.

e. mutual life insurance equity. explanation on nature as well as rules

and regulations related to the mutual life insurance equity;
explanations on method and amounts distributed to the policy
holders.

f. gross premium revenue. disclosure on first year premium and details

of its renewal based on the group and the type of insurance.

g. claim and benefit. disclosure on type, amount and reasons for

significant increase in claim and benefit.

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psak 36 accounting for life insurance

effective date

46 this standard becomes operative for the presentation and

preparation of financial statements for the period beginning on or after
january 1, 1996. early application is highly recommended.

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psak 36 accounting for life insurance

attachment

example of financial statements

1. balance sheet

p.t. asuransi jiwa abc

balance sheets
december 31, 19x2 and 19x1

assets liability and equity

19x2 19x1 19x2 19x1

obligatory deposit xx xx liab. for future

non-obligatory deposit xx xx policy benefit xx xx
time deposit xx xx est. of claim payable . xx xx
capital stocks xx xx claim payable xx xx
bonds xx xx unearned premium
money market securities xx xx income xx xx
direct participation xx xx
land and building xx xx total liab. to policy
mortgage loan xx xx holders xx xx
policy loan xx xx
other investments xx xx premium deposits xx xx
total investment xx xx reinsurance payable xx xx
commission payable xx xx
cash and bank xx xx undistributed earnings
premium receivable xx xx attributable to policy
reinsurance receivable xx xx holders xx xx
investment income receivable xx xx accrued expenses xx xx
other receivables xx xx subordinated debt xx xx
prepaid expenses xx xx
fixed assets
- land xx xx equity
- building xx xx authorised cap....shares
acc. depr. (xx) (xx) @rp. ...
- other fixed assets xx xx subscribed and paid in cap.
acc. depr. (xx) (xx) ....shares xx xx
other assets additional paid in cap./
- deferred acq. cost xx xx xx xx
retained earnings xx xx
total equity xx xx

total assets xx xx total liab.&eq. xx xx

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psak 36 accounting for life insurance

2. income statement (single step)

p.t. asuransi jiwa abc
income statement
for the years ended december 31, 19x1 and 19x2

19x2 19x1

income
premium income
gross premium xx xx
less: reinsurance premium (xx) (xx)
less (add)  increase (decrease)
of unearned premium income (xx) (xx)
total premium income xx xx

investment income xx xx
financial institution pension fund service income xx xx
other income xx xx

total revenue xx xx

expenses

claim and benefit xx xx
deducted by: reinsurance claim recovery (xx) (xx)
add (less) : increase (decrease) in liability
for future policy benefit and estimation of claim
payable xx xx
amortisation of deferred acquisition cost xx xx
marketing xx xx
general and administrative xx xx
other income (expenses) xx xx

total expenses xx xx

profit (loss) before tax xx xx
income tax xx xx
current year net income xx xx
dividend xx xx
retained earnings, beginning of the year xx xx
retained earnings, end of the year xx xx

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psak 36 accounting for life insurance

3. statement of cash flows (direct method)

p.t. asuransi jiwa abc
statement of cash flows
for the years ended december 31, 19x2 and 19x1

19x2 19x1

cash flows from operating activities
premium receipt xx xx
reinsurance claim receipt xx xx
other receipts xx xx
payment for reinsurance premium (xx) (xx)
payment for commission (xx) (xx)
payment for claim (xx) (xx)
payment for general and administrative expense (xx) (xx)
payment for tax (xx) (xx)
payment for other costs (xx) (xx)
net cash flows from/for operating activities a xx xx

cash flows from investing activities
receipt from investment income xx xx
liquidation of deposit xx xx
liquidation of bonds xx xx
proceed from sale of equity and debt securities xx xx
proceed from sale of fixed assets xx xx
additions to  deposit (xx) (xx)
acquisition of equity and debt securities (xx) (xx)
acquisition of fixed assets (xx) (xx)
acquisition of other investments (xx) (xx)
net cash flows from/for investing activities b xx xx

cash flows from financing activities
receipt of subordinated debt xx xx
proceeds in paid in capital xx xx
payment of subordinated loan (xx) (xx)
payment of cash dividend (xx) (xx)
net cash flows from/for financing activities c xx xx

net increase (decrease) in cash a+b+c xx xx
balance of cash & cash equivalent­­beginning of period xx xx
balance of cash & cash equivalent­­end of period xx xx

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psak 36 accounting for life insurance

4. cash flows (indirect method)

p.t. asuransi jiwa abc
statement of cash flows
for the years ended december 31, 19x2 and 19x1

19x2 19x1

cash flows from operating activities
income before tax xx xx
adjustments for non­cash expenses
fixed assets depreciation xx xx
amortisation of intangible assets xx xx
operating income before changes in working capital xx xx
decrease (increase) in current assets
increase (decrease) in current liabilities:
(increase) in premium receivable,
reinsurance receivable, accrued investment income,
other receivables, (xx) (xx)
decrease in prepayment xx xx
increase in liability for future policy benefit,
estimation of claim liability, claim payable,
unearned premium income xx xx
net cash from insurance main operations xx xx
payment of corporate income tax (xx) (xx)
payment of interest (xx) (xx)
cash flows from operations xx xx
other income xx xx
net cash from operating activities a xx xx

cash flows from investing activities
net investment income xx xx
adjustment for non­cash expenditure
investment depreciation xx xx
investment amortisation xx xx
cash flows from investing activities xx xx
decrease (increase) in statutory deposit, ordinary
deposit (xx) (xx)
decrease (increase) in shares, obligation, marketable
securities (xx) (xx)
decrease (increase) in direct investment (xx) (xx)
cash flows from investment accounts b xx xx

cash flows from financing activities
proceed from share emission xx xx

27
psak 36 accounting for life insurance

receipt from subordinated loan xx xx
payment of dividend (xx) (xx)
cash flows from financing activities c xx xx

net increase (decrease) in cash a+b+c xx xx
balance of cash & cash equivalent, beginning of period xx xx
balance of cash & cash equivalent, end of period xx xx

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