Regulatory Alerts2018-04-01
Circular 2: Provision for Outstanding Liabilities in Friendly Societies
The Registrar of Friendly Societies mandates that all privately administered friendly societies include adequate specific provisions for all unpaid claims incurred before the financial year-end in their final accounts. To ensure compliance, societies must maintain detailed records of claims paid in subsequent years, enabling auditors to verify provision adequacy and qualify their reports if deficiencies are found. Additionally, societies are required to submit an auditor's certificate confirming the maintenance of these records alongside their next annual return.
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