Minority interests  are that portion of the profit or loss and net assets of a subsidiary attributable to equity interests that are not owned, directly or indirectly through subsidiaries, by the parent. 

Monetary items  are units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency. 

Onerous contracts  are contracts in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. 

Operating expenses  are all expenses associated with selling and administrative activities (excluding commissions) after reallocation of claim handling expenses to benefits paid. 

Past service cost  is the increase in the present value of the defined benefit obligation for employee service in prior periods, resulting in the current period from the introduction of, or changes to, post-employment benefits. 

Plan assets  are assets held by a long-term employee benefit fund and qualifying insurance policies. 

Policy acquisition costs  are the expenses incurred in soliciting and placing new business as well as renewal of existing business. It includes agent’s commissions, underwriting expenses, medical and credit report fees, marketing expenses and all other direct and indirect expenses of the departments involved in such activities. 

Policyholder  is a party that has a right to compensation under an insurance contract if an insured event occurs. 

Presentation currency  is the currency in which the financial statements are presented. 

Price risk  is a market risk, namely the risk that the value of a financial instrument will fluctuate as a result of changes in market prices. 

Private loan  is a non-derivative financial asset with a fixed interest rate and a maturity date, which is not bought in an active market but negotiated between the two parties involved. Private loans are not embodied in securities. When a private loan takes the form of a private placement of bonds or other investments directly to an institutional investor like an insurance company, it has more the character of a bond loan and such financial instruments are classified as available-for- sale investments rather than as loans and receivables. 

Projected unit credit method  is an actuarial valuation method that sees each period of service as giving rise to an additional unit of benefit entitlement and measures each unit separately to build up the final obligation. 

Qualifying insurance policies  are a component of plan assets. These are insurance policies issued by an insurer that is not a related party of the reporting entity, if the proceeds of the policies: 

■  Can be used only to pay or fund employee benefi ts under a defi ned benefit plan; and 

■  Are not available to the reporting entity’s own creditors. 

Real estate investments foreclosed  are real estate investments purchased through foreclosure on the mortgage. Such purchases are not accounted for as mortgages, but as real estate investments until they can be sold at a better price than at the foreclosure. Meanwhile they yield a rental income. 

Realizable value  is the amount of cash or cash equivalents that could currently be obtained by selling an asset in an orderly disposal. 

Recognition  is the process of incorporating in the balance sheet or income statement an item that meets the definition of an element and satisfies the following criteria for recognition: 

■  It is probable that any future economic benefi t associated with the item will flow to or from the entity; and 

■  The item has a cost or value that can be measured with reliability. 

Reinsurance assets  are a cedant’s net contractual rights under a reinsurance contract. 

Reinsurance contract  is an insurance contract issued by one insurer to compensate another insurer for losses on one or more contracts issued by the cedant. 

Renewal of a contract  is when a policyholder takes whatever action is required, typically payment of a premium, in order to maintain benefits under the contract. 

Repurchase agreement  is a sale of securities with an agreement to buy back the securities at a specified time and price. 

Return on plan assets  is the investment income derived from plan assets, together with realized and unrealized gains and losses on the plan assets less any costs of administering the plan and less any tax payable by the plan itself. 

