Question

A general insurer bundles motor policies with a roadside assistance service delivered by a third party. Premium is collected upfront for 12 months; assistance is stand-ready and can be used any time. Insurer pays the third party per call. Under Ind AS 115, how is revenue timing determined?

A Recognize entire premium at inception as significant performance occurs on issue
B Recognize premium over time; assistance is a distinct stand-ready service
C Allocate all premium to claims expected and recognize when claims occur
D Defer only reinsurance portion; recognize net immediately
E Recognize when cash is collected because consideration is fixed
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