18 January 2011
I am not clear what do you mean by insurance and premium with respect to prepaid exp. Prepaid exp may arise only in case of premium of any insurance. Premium is expenditure not the insurance.
Lic premium could not be prepaid exp. the reason is it can not be get refunded if you want to stop the insurance.The nature of this expenditure is one time expenses.
19 January 2011
Hi shailesh, though the nature of expense i.e. lic premium is non refundable but if it is refubndable then will it be treated as repaid expense.
CAclubindia
