S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer. S2: Under the general model of PFRS 17, a group of insurance contract is initially measured at the fulfillment cash flows and the contractual service margin. A. Both statements are correct B. Only S1 is correct C. Both statements are incorrect D. Only S1 is incorrect

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer.

S2: Under the general model of PFRS 17, a group of insurance contract is initially measured at the fulfillment cash flows and the contractual service margin.

A. Both statements are correct
B. Only S1 is correct
C. Both statements are incorrect
D. Only S1 is incorrect

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