New RBI Grade B 2025 Notification will come Soon! Enroll Here

    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.

    Practice Next

    Relevant for Exams: