The complication in determining the value of liabilities arises because the insurance company has committed to make payments at some time in the future, and those payments are recorded as contingent liabilities on its financial statement.

Question

Quizplus · Accepted Answer

This is true because liabilities for insurance companies often involve future payments that are uncertain in both timing and amount, making them contingent liabilities.

The Complication in Determining the Value of Liabilities Arises Because