Question

Claim payments net of subrogation recoveries are material. The entity reports claim cash flows on a gross basis. Can subrogation recoveries be offset in the operating section?

A Yes, always
B No, cash flows are presented gross unless policy allows netting for quick turnover items
C Yes, if legally enforceable netting exists and practice is consistent
D Only in financing activities
E Only in investing activities
Practice Next

Hey! Ask a query