Insurance premium
This query is : Open
27 August 2016
When would an insurance company recognize the premium received on insurance?Example- if premium is received in dec2015 for the year 2015 when will the insurance co. Recognise it?what will be the treatment of insurance premium payed in the books of person who payed it?
28 August 2016
Dear Palak,
For individuals it will be treated as drawing( taking example of life insurance premium)
Life insurance premium..... Dr
To Cash
kindly like if my response has helped you
31 August 2016
Sorry but what i meant was when will it be recognized in terms of revenue recognition
31 August 2016
Dear Palak,
Your query was what will be the treatment of insurance premium payed in the books of person who payed it and we have given the answer taking individual as a example.
Further for insurance company revenue recognision detail is mentioned below..
In insurance company there are two types of contacts short term and long term.
In short term contact insurance company can recognize revenue in relation to the time expired on the agreement.
Further for Long contact contact revenue can be recognised on due basis whether the premium is received or not.
Hope your query is resolved
Kindly like if my response has helped you
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- ITC temporary reversal and reclaim
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Sale of property furniture sale
- REGARDING 25 AS DATE OF PAYMENT AND DATE OF BOOKING
- GST Regis.
- Tds on building rent monthly
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
