Question

What is the requirement of IFRS regarding the presentation of reinsurance transactions?

a.

Reinsurance assets should be offset against related reinsurance liabilities

b.

Income or expense from reinsurance contracts should be offset against income or expense from related insurance contracts

c.

Reinsurer's share of policy liabilities should be presented as an asset

d.

All of the above

Answer: (d).All of the above Explanation:IFRS requires both gross and net presentation of reinsurance transactions. It stipulates that reinsurance assets should not be offset against related reinsurance liabilities, income or expense from reinsurance contracts should not be offset against income or expense from related insurance contracts, and the reinsurer's share of policy liabilities should be presented as an asset.

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Q. What is the requirement of IFRS regarding the presentation of reinsurance transactions?

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