acquisition cash flows vs expense

HateExams99HateExams99
in CIA.IFRS17-LRC

Hi,

The formula for LRC= Premium - Insurance Acquisition +/- Amount from derecognition of asset and liabilities.

For the second item "Insurance Acquisition" there's note saying "unless the entity chooses to recognize the payments as an expense". I thought acquisition cost IS a type of expense, no?

Thanks!

Comments

  • Staff-T1Staff-T1

    It is -> But you can choose to amortize it rather than expensing it up front to spread the costs. It's an accounting rule

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