Which statements are correct? S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financialstatements present information that is more relevant. S2: Outward Reinsurance is where the premium and commissionshall be accounted for in the different accounting period original policy to which the reinsurance relates. $3: Premiumdeficiency arises when the unearned premium reserve is less than the estimated claims related expenses.

Only the S1 is correct PFRS 17 said that insurer can change its accounting policy if it provides…

1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial atements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission hall be accounted for in the different accounting period original policy to which the reinsurance relates. $3: Premium eficiency arises when the unearned premium reserve is less than the estimated claims related expenses.

1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial atements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission hall be accounted for in the different accounting period original policy to which the reinsurance relates. $3: Premium eficiency arises when the unearned premium reserve is less than the estimated claims related expenses.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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