TRUE OR FALSES1 The straight-line method computes the unearned premiums, policy by policy, on a pro-rata basis inrespect of the unexpired periods of the respective insurance policies at the end of each period.S2 PFRS 17 exempts an insurer temporarily from some requirements of other PFRS in selectingaccounting policies for insurance contract for liability adequacy test.S3 Insurers shall disclose the following information that identifies and explains the amounts in itsfinancial statements arising from insurance contract which includes its accounting policies for insurancecontract and related assets, liabilities, income and expenses.

Given: To explain true or false as,

unexpired periods of the respective insurance po mpts an insurer temporarily from some requiren cies for insurance contract for liability adequacy Il disclose the following information that identifi hents arising from insurance contract which inclu lated assets, liabilities, income and expenses.

unexpired periods of the respective insurance po mpts an insurer temporarily from some requiren cies for insurance contract for liability adequacy Il disclose the following information that identifi hents arising from insurance contract which inclu lated assets, liabilities, income and expenses.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Under AASB 119, leave entitlements that may be carried forward to a future financial period if…

A: Leave entitlement means the number of days the employee can take off (holiday) in a year which are…

Q: When a life insurance policy lapses, it: a. benefits the insured b. benefits neither the insurer nor…

A: When insured person fails to pay the premium on insurance than it is said that policy has lapsed and…

Q: The type of account and normal balance of prepaid insurance would be

A: An asset is a resource controlled by an entity from which future economic benefits flow to the…

Q: ne purpose of casualty policy’s condition section is to list the property that is to be covered…

A: Casualty policies are taken to prevent the the company from liabilities arising out of damage or…

Q: A sub-capitation payment is a:

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: The balance found in the revenue account of general insurance companies is treated as:

A: Revenue account is the one that includes all the revenue earned and outlays incurred by an entity.

Q: An insurance company notifies an insured thal $50 of lhe insured's physician's charge is above he…

A: Normally the insurance companies cover only the UCR rates that is the usual, customary and…

Q: S1: The straight-line method computes the unearned premiums, policy by policy, on a pro-rata basis…

A: Insurance contract is defined as the agreement under which the insurer of the contract promise to…

Q: long-term basis at the end of

A: Short-term obligation are those which mature within a period of one year. Long term obligations are…

Q: True or False? 1. An insurance contract is derecognized when it is extinguished and when it is…

A: An insurance contract is a contract between the two parties where one party promises to pay the…

Q: The adjusting entry to record a contingent liability requires a debit to a loss (or expense) account…

A: Contingent liability is a potential liability that arises as a result of past transactions but the…

Q: Collision and comprehensive: Multiple Choice O O Only pay the insurer Only pay the insured Are…

A: The purchase of collision insurance is often only possible in conjunction with the purchase of…

Q: How is the account Prepaid Insurance classified and on which financial statement should it be…

A: Prepaid insurance is the portion of an insurance premium that has been paid in advance and has not…

Q: 17. The insurer will issue to the insured before completion of policy Form. *

A: Cover Note A cover note is a temporary certificate of insurance issued by the Insurer before the…

Q: Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø…

A: Deduction in respect of life insurance (80C) The provisions of sub-section (2) shall apply only to…

Q: Which of the following temporary differences results in a deferred tax asset in the year the…

Q: 17. The insurer will issue to the insured before completion of policy form. O A. certificate of…

A: Insurance is a means of protecting oneself against financial loss. It's a sort of risk management…

Q: anticipated liability, which may or may not arise in future in known as a Current Liability b.…

A: ⇔Debts or obligations that must be paid within a year are referred to as current liabilities,…

Q: After the expiry of the policy period On the death of the insured or on the expiry of policy period…

A: Insurance means where insurance company agree to pay the specified amount to insured person in case…

Q: Which of the following statements is not correct?

A: Leave monetization is actually the leave encashment which means the if there is any earned leaves…

Q: S1: In accordance with the accrual assumption, the full amount of the premium is recognized…

A: Here given the details of Accrual basis of assumption in the insurance premium collection, the…

Q: What is the consideration for the insurer in an insurance contract?

A: Contract: Contract is an agreement among two parties or more parties which includes enforceable…

Q: S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as…

A: The current set of questions is related to accounting practices for an insurance company in terms of…

Q: S1: In accordance with the accrual assumption, the full amount of the premium is recognized…

A: Accrual concept of accounting state that the revenue in the books of accounts are recorded as and…

Q: The period of time al the beginning of a disability during which no benefils are payable is known as…

A: In long-term care and disability insurance is the insurance used to protect an individual's…

Q: If an insured fails to pay the premium when due, the insured's heallh policy will remain in force…

A: Health insurance is a type of insurance that helps to pays for medical costs incurred as a result of…

Q: A) Increase the present loan by the interest B) Terminate the contract C) Refuse to grant future…

A: If interest on policy loan is not paid on is not paid on policy anniversary the insurance company…

Q: An individual accident and health insurance policy must include O A. An automatic reinstatement…

A: In some form, every state in the US has passed the Uniform Individual Accident and Sickness Policy…

Q: Insuring clause in an Accident & Health policy states which of the following information? A. The…

A: There are different clause in the insurance policy that what is covered and what is not covered and…

Q: An arrangement for creditors to accept an amount less than the amount owed to them is referred to as…

A: The debtor typically proposes a payment plan that offers to pay a certain percentage of the total…

Q: Under AASB 119, leave entitlements that may be carried forward to a future financial period if…

A: Leave entitlement is the number of paid holidays allowed to an employee in that year. Accumulative…

Q: Which of the following characteristics is typical of group insurance? A.Each employee receives an…

A: Following are the characteristics of group insurance 1. It is a group contract that covers all the…

Q: assume that we report the reinsurance company amount of recoverable claims 35000, expected amo…

A: Adjusting Entry-An unrecorded transaction can be tracked via altering journal entries, which are…

Q: In terms of Business interruption insurance, the gross profit sum insured can be calculated on the…

A: The gross profit sum insured is calculated by deducting the purchase cost from the turnover. And…

Q: Recorded an adjusting journal entry for the portion of insurance coverage

A: Adjusting entry means where some adjustment need to be made at the end of specified period for…

Q: eived. a. amount charged

A: UCR costs are the rates that are usually levied or prevalent for health services in a certain…

Question

TRUE OR FALSE
S1 The straight-line method computes the unearned premiums, policy by policy, on a pro-rata basis in
respect of the unexpired periods of the respective insurance policies at the end of each period.
S2 PFRS 17 exempts an insurer temporarily from some requirements of other PFRS in selecting
accounting policies for insurance contract for liability adequacy test.
S3 Insurers shall disclose the following information that identifies and explains the amounts in its
financial statements arising from insurance contract which includes its accounting policies for insurance
contract and related assets, liabilities, income and expenses.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true
How is the account Prepaid Insurance classified and on which financial statement should it be recorded? current asset, balance sheet revenue, income statement current liability, balance sheet expense, income statement
Determine if this shall result in recognition of liabilities 5. signing of employment contract by a new employee a. yes b. no
The Claims Made Policy Form will pay for looses that occur at which of the following times? After the expiration date of the policy Before the retroactive date, and reported during the policy term During the policy term, and presented after the policy term After the expiration date, and reported during the policy term
employee’s employment as a result of either: I. An entity’s decision to terminate an employee’s employment before the normal retirement date. II. An employee’s decision to accept an offer of benefits in exchange for the termination of employment. III. An employee’s decision to terminate an employee’s employment before the normal retirement date. IV. An entity’s decision to accept an offer of benefits in exchange for the termination of employment. III and IV I and III II and IV I and II
Which of the following statements about "Waiver of Premium due to Disability" is false? A) Disability must occur before a stated date B) The insured has to die while disabled C) There is a waiting period D) It has to be attached to a life insurance policy
explain five different parts of an insurance contracts and what purpose each serves. Give examples of how these segments may appear in an insurance contract
C. renewal notice O D. completing notes 19. is the document that acknowledge the insured legally entitled to receive the payment from the policy. * O A. Discharge notes B. Completion notes O C. Claim form O D. Policy form 20. The written insurance document that may include all clauses, exception and
Please do not give solution in image format thanku TRUE or FALSE: Incurred but not reported (IBNR) is a type of reserve account used in the insurance industry as the provision for claims that have taken place but have not yet been reported to an insurer.
When MUST the Policy Summary for a life insurance policy be delivered? Prior to the sales presentation With or prior to delivery of the policy Within a year after delivery of the policy Only upon delivery of a replacement policy.
Identify which one of the following type of life insurance provides a source of regular income to the assured or to his/her dependents after the expiry of a specified period? a. With profit policy b. Term life policy c. Annuity d. Whole life policy
Which of Ike following statements is CORRECT about he Missialement of Age provision in a health policy? A.Il is not an oplional provision. B.It allows an insurance company to adjust the levels of policy benefits for an insured who misslated his age. C.It limits the time wilhin which an insurance company may conlest a claim on the basis of misstatement of age. D.It always voids the contract