12 Claim recovery from reinsurers is recognised when recording of claim and loss adjustment expenses in related with reinsurance contract. Benefit payments under life policies are recorded as expenses when notices of claims have been received or when conditions in policies are met. f) Commission and brokerage expenses Commission and brokerage are expended when incurred. Commission and brokerage paid for policies with coverage periods of longer than 1 year are recorded as prepayment item and recognised as expenses over the coverage period each year. 5.3 Financial asset - Investments Financial asset - debt instruments The Company and its subsidiaries classify its investment in debt securities as subsequently measured at amortised cost or fair value in accordance with the Company’s and its subsidiaries’ business model for managing the financial assets and the contractual cash flows characteristics of the financial assets. The classification based on the facts and circumstances available on the date that the financial reporting standards were initially applied or the date of acquisition, classified as follows: a) Financial assets measured at fair value through profit or loss Investments in debt instruments held within a business model whose objective is not to hold financial assets in order to collect contractual cash flows or, the contractual terms of the financial assets represent contractual cash flows that are not solely payments of principal and interest on the principal amount outstanding. The Company and its subsidiaries classify these as financial assets measured at fair value through profit or loss. These financial assets are initially recognised at fair value. After initial recognition, gain or loss on changes in fair value are recognised in profit or loss. At the period end, investments in debt instruments measured at fair value through profit or loss are presented in statement of financial position at fair value. 228
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