In the context of IFRS 4 (Insurance Contracts), identify four items that are excluded from requirements of this standard
- Product warranties issued directly manufacturer, dealer or retailer.
- Employers‟ assets and liabilities under employee benefit plans.
- Contractual rights obligations that are contingent on the future use of, or right to use a non-financial item( for example some license fees, royalties, contingent lease payments and similar items), as well as lessees‟ residual value guarantee embedded in a finance lease.
- Financial guarantees into which an entity enters or retains on transferring to another party financial assets or financial liabilities within the scope of IAS 39, regardless of whether the financial guarantees are described as financial guarantees, letters of credit or insurance contracts.
- Contingent consideration payable or receivable in a business combination.
- Direct insurance contracts that the entity holds (i.e. direct insurance contracts in which the entity is the policy holder). However a cedant shall apply this IFRS to reinsurance contracts that it holds.