A reinsurance asset is impaired if,and only if there is objective evidence,as a result of an event that occurred after initial recognition,that the cedant may not receive amounts due to it under the terms of the contract; and that event has a reliably measurable impact on the amounts that the cedant will receive from the reinsurer.

Question

Quizplus · Accepted Answer

This statement accurately reflects the definition of impairment for reinsurance assets. It specifies that impairment can only occur if there is objective evidence of a future loss of funds due to an event that occurs after the asset was initially recognized, and that this loss is reliably measurable.

A Reinsurance Asset Is Impaired If,and Only If There Is