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 Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 9Q

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S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. S2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. S3: Premiurn deficiency arises when the unearned premium reserve is less than the estimated claims related expenses. a. Only S3 is incorrectb. All statements are correctc. Only S2 is correctd. Only S3 is correcte. Only S1 is incorrectf. Only S2 is incorrectg. All statements are incorrecth. Only S1 is correct
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