AASB 1023 "General Insurance Contracts" requires premium revenue to be recognised in the comprehensive statement of income from attachment date using which basis?

Question

Quizplus · Accepted Answer

AASB 1023 requires premium revenue to be recognised systematically using a basis that is consistent with the pattern of the incidence of risk, which is option C. This means that revenue is recognised over the period in which the risks are transferred to the insurance provider, which may not be evenly spread over the duration of the contract. Option A is incorrect because straight-line recognition may not reflect the underlying pattern of risk incidence. Option B is incorrect because it is too broad and does not provide a specific recognition method. Option D is incorrect because it ignores the timing of the transfer of risk. Option E is incorrect because not all options are correct.

AASB 1023 "General Insurance Contracts" Requires Premium Revenue to Be