Where an Insurer Reinsures Some or Its Entire Insurance Portfolio,AASB

Where an insurer reinsures some or its entire insurance portfolio,AASB 1023 requires that,with respect to the revenue received relating to the reinsured policies and the premiums ceded to the reinsurer:

A) the revenue and premiums be set-off so that the net revenue only is recorded as this reflects the risk borne by the direct insurer.
B) the gross revenue be reflected in the accounts but a provision for reinsurance premiums be created and set-off against the policy revenue.
C) the net amount of premium (gross premium revenue less amounts transferred to the reinsurer) be recognised but a note disclosing both the gross amount of revenue and the premiums transferred to the reinsurer be provided.
D) the full amount of revenue received by the direct insurer be recognised and the portion of the premiums ceded to the reinsurer treated as an expense.