Question

Which accounting method is used for long-duration insurance contracts under IND AS 104?

A Historical cost method Correct Answer Incorrect Answer
B Fair value method Correct Answer Incorrect Answer
C Amortized cost method Correct Answer Incorrect Answer
D Expected cash flow method Correct Answer Incorrect Answer
E Discounted cash flow method Correct Answer Incorrect Answer

Solution

Explanation: IND AS 104 requires the use of the Expected Cash Flow method for measuring and recognizing the insurance contract liabilities.

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