Calculate the following ratios d. Liquid ratio.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Calculate the following ratios
d. Liquid ratio.
![AL AHLIA INSURANCE COMPANY SAOG
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2020
2020
2019
Notes
RO
RO
Insurance premium revenue
Insurance premium ceded to reinsurers
19
21,272,026
(3,166,494)
24,881,678
19
(1,866,017)
Net insurance premium revenue
Commissions received on ceded reinsurance
Claims
Reinsurers' share of claims
Deferred acquisition cost
Commissions paid
19
18,105,532
194,326
(13,214,261)
6,687,417
(134,160)
(1,752,118)
23,015,661
128,795
(14,690,883)
3,114,572
12,322
(2,042,485)
20
20
8
Net underwriting result
General and administrative expenses
Investment income (net)
Interest on lease liabilities
Other income - net
9,886,736
(7,037,876)
2,090,707
(75,576)
325,849
9,537,982
(6,308,228)
1,726,244
(80,746)
1,203
22
21
33
Profit before taxation
5,189,840
4,876,455
Income tax
23
(800,000)
(765,000)
Profit and other comprehensive income for the year
4,389,840
4,111,455
Basic and diluted earnings per share
27
0.044
0.041](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c83cdf1-2fe2-408f-baca-a2b16b424379%2F1ddc485a-ad66-448f-a555-a56259af0239%2Fhdslo4_processed.png&w=3840&q=75)
Transcribed Image Text:AL AHLIA INSURANCE COMPANY SAOG
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the year ended 31 December 2020
2020
2019
Notes
RO
RO
Insurance premium revenue
Insurance premium ceded to reinsurers
19
21,272,026
(3,166,494)
24,881,678
19
(1,866,017)
Net insurance premium revenue
Commissions received on ceded reinsurance
Claims
Reinsurers' share of claims
Deferred acquisition cost
Commissions paid
19
18,105,532
194,326
(13,214,261)
6,687,417
(134,160)
(1,752,118)
23,015,661
128,795
(14,690,883)
3,114,572
12,322
(2,042,485)
20
20
8
Net underwriting result
General and administrative expenses
Investment income (net)
Interest on lease liabilities
Other income - net
9,886,736
(7,037,876)
2,090,707
(75,576)
325,849
9,537,982
(6,308,228)
1,726,244
(80,746)
1,203
22
21
33
Profit before taxation
5,189,840
4,876,455
Income tax
23
(800,000)
(765,000)
Profit and other comprehensive income for the year
4,389,840
4,111,455
Basic and diluted earnings per share
27
0.044
0.041
![AL AHLIA INSURANCE COMPANY SAOG
STATEMENT OF FINANCIAL POSITION
At 31 December 2020
2020
RO
2019
Notes
RO
Assets
2,332,733
38,412,876
5,883,353
6,965,366
440,561
6,058,834
70,741
71,429
2,407,890
1,184,996
1,186,634
165,776
15,448,529
3,039,788
40,712,876
6,179,378
6,693,579
280,765
4,604,468
68,278
71,429
2,408,351
1,149,843
1,485,634
148,832
15,448,529
5
Cash and cash equivalents
Bank deposits
Premiums and insurance balances receivable
Reinsurers' share of outstanding claims
Reinsurers' share of unearned premium reserve
Other receivables and prepayments
Investments at fair value through profit or loss
Available-for-sale investments
Held-to-maturity investments
Property and equipment
Right of use assets
Deferred tax asset
6
7
20
17
8
11
33
23
Goodwill
12
Total assets
80,629,718
82,291,750
Equity and liabilities
Capital and reserves
Share capital
Legal reserve
Contingency reserve
10,000,000
3,909,423
10,000,000
113,876
15,763,591
10,000,000
3,909,423
10,000,000
114,596
15,473,031
13
14
15
Revaluation reserve
16
Retained earnings
Total equity
39,786,890
39,497,050
Liabilities
Liabilities arising from insurance contracts
Gross unearned premium reserve
Gross outstanding claims
10,774,725
23,442,679
17
8,588,703
22,984,039
20
31,572,742
1,092,187
5,896,380
1,122,332
1,159,187
34,217,404
926,646
4,125,592
1,407,042
2,118,016
Reinsurance balances payable
Other liabilities and accruals
18
Lease liabilities
33
Income tax payable
23
Total liabilities
40,842,828
42,794,700
Total equity and liabilities
80,629,718
82,291,750
Net assets per share
26
0.398
0.395](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c83cdf1-2fe2-408f-baca-a2b16b424379%2F1ddc485a-ad66-448f-a555-a56259af0239%2Fznqbp9q_processed.png&w=3840&q=75)
Transcribed Image Text:AL AHLIA INSURANCE COMPANY SAOG
STATEMENT OF FINANCIAL POSITION
At 31 December 2020
2020
RO
2019
Notes
RO
Assets
2,332,733
38,412,876
5,883,353
6,965,366
440,561
6,058,834
70,741
71,429
2,407,890
1,184,996
1,186,634
165,776
15,448,529
3,039,788
40,712,876
6,179,378
6,693,579
280,765
4,604,468
68,278
71,429
2,408,351
1,149,843
1,485,634
148,832
15,448,529
5
Cash and cash equivalents
Bank deposits
Premiums and insurance balances receivable
Reinsurers' share of outstanding claims
Reinsurers' share of unearned premium reserve
Other receivables and prepayments
Investments at fair value through profit or loss
Available-for-sale investments
Held-to-maturity investments
Property and equipment
Right of use assets
Deferred tax asset
6
7
20
17
8
11
33
23
Goodwill
12
Total assets
80,629,718
82,291,750
Equity and liabilities
Capital and reserves
Share capital
Legal reserve
Contingency reserve
10,000,000
3,909,423
10,000,000
113,876
15,763,591
10,000,000
3,909,423
10,000,000
114,596
15,473,031
13
14
15
Revaluation reserve
16
Retained earnings
Total equity
39,786,890
39,497,050
Liabilities
Liabilities arising from insurance contracts
Gross unearned premium reserve
Gross outstanding claims
10,774,725
23,442,679
17
8,588,703
22,984,039
20
31,572,742
1,092,187
5,896,380
1,122,332
1,159,187
34,217,404
926,646
4,125,592
1,407,042
2,118,016
Reinsurance balances payable
Other liabilities and accruals
18
Lease liabilities
33
Income tax payable
23
Total liabilities
40,842,828
42,794,700
Total equity and liabilities
80,629,718
82,291,750
Net assets per share
26
0.398
0.395
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