Prepare the following financial statements of Integrity Insurance Limited for publication in accordance with relevant legislations and international reporting standards (IFRS):

1. Prepare the Statement of Comprehensive Income for the year ended 31^st December, 2017
2. Prepare the Statement of Changes in Equity for the ended 31^st December, 2017
3. Prepare the Statement of Financial Position as at 31^st December, 2017.

Trial Balance of Integrity Insurance Company Limited as at 31st December, 2017
	Debit	Credit
Gross premium		130,111,229
Premium returned	15,000,000
Reinsurance premium paid	50,404,698
Claims paid	13,251,433
Commissions paid	213,875
Interest paid	1,965,323
Directors emoluments	785,491
Staff cost	42,794,259
Audit fees	196,150
Other income- Interest on investment		5,500,000
Reinsurance claims recovered		5,200,000
Stated capital		45,800,000
Capital surplus		29,382491
Income surplus		5,879,340
Contingency reserve		24,662,451
Building	19,374,971
Motor vehicle	7,998,382
Equipment and furniture	13,564,477
Acc. Dep: Building		3,431,036
Acc. Dep: Motor vehicle		5,046,606
Acc. Dep: Equipment and furniture		1,653,706
Intangible assets	3,798,391
Investment properties	51,442,575
Short term investment	49,898,190
Receivables	18,181,968
Prepayment	1,057,595
Unexpired risk reserve		14,726,165
Bank Overdraft		4,956,423
Outstanding claims payable		11,317,898
Taxation		2,260,433
	289,927,778	289,927,778

Notes:

1. Unexpired reserve risk is calculated at 25%
2. Depreciation is to be accounted for on the following basis:

Buildings                                           5%                   Straight line method

Motor vehicles                                    20%                 Reducing balance method

Equipment and furniture                     10%                 Straight line method

3. Accrued claims payable as at 31^st December, 2017 is $3,996,286
4. Outstanding Interest payable as at 31^st December, 2017 is $1,033,184
5. In compliance with the Insurance Act (Act 724) 20% of net profit after tax is to be transferred to contingency reserve.
6. Assume corporate tax is 25%

Answer rating: 100% (QA)

a Statement of Comprehensive Income For the year ended 31st Dec 2017 Particulars Amount in Revenue Gross Premium 115111229 Less Reinsurance Premium 50... View the full answer