Accounting treatment of transactions with the Special Protection Fund for Deposits and Life Insurance

12-14 Congresstraat | 1000 Brussels +32 2 220 53 42 | +32 2 220 54 93 | www.cbfa.be CBFA Communication CBFA_2011_14 dated March 22, 2011 Accounting treatment of transactions with the Special Protection Fund for Deposits and Life Insurance

Scope: Insurance companies authorized to underwrite life insurance policies with guaranteed returns, belonging to branch 21 as referred to in Annex I of the Royal Decree of February 22, 1991, establishing the general regulations concerning the supervision of insurance companies.

Summary/Objective: This communication explains the accounting treatment of transactions carried out within the framework of deposit protection schemes, financial instruments, and life insurance.

Dear Madam, Dear Sir,

With this communication, the CBFA provides further clarity on the accounting treatment of transactions with the Special Protection Fund for Deposits and Life Insurance, which was established by Royal Decree of November 14, 2008.

Contributions paid within the framework of the protection schemes for life insurance are recorded in item 626.1 "Other gross expenses" of the income statement with the technical accounts "life". The repayment of contributions paid by insurance companies within this same framework is recorded in item 724.1 "Other gross revenues".

Any claims or debts regarding the Special Protection Fund for Deposits and Life Insurance are recorded either in item 413.3 "Other (claims)" or in item 425.27 "Other (debts)".

Please note that we will send a copy of this communication to the auditor(s), certified public accountant(s) of your institution.

Sincerely,

The Chairman, Jean-Paul SERVAIS