Insurance revenue for reinsurance contracts issued

sarahhuang33

Hi,
In the wiki, the answer for this question is:
For entities applying PAA, the revenue recognition requirements
Treatment of reinsurance cash flows that are contingent on claims of the underlying contracts
Treatment of amounts paid to the purchaser of reinsurance contracts, not contingent on claims of underlying contracts

While in the battlecards the answer is saying different: "seasonality..."
I wonder which one of the answers is correct for us to do the memorization?

Thanks

Staff-T1

They say the same things differently. I find the ones in the BC easier to memorise. Revenue recognition depends on seasonality. Treatment of reinsurance CF contingent on claims refers to reinstatement premiums while the reinsurance CF not contingent on claims refers to ceding commissions

sarahhuang33

Thanks!