Which of the Following Statements Is Not in Accordance with AASB

question 36

Multiple Choice

Which of the following statements is not in accordance with AASB 1023 "General Insurance Contracts"?

• A) Premium that has not been recognised in the income statement is premium that is unearned and shall be recognised in the balance sheet as an unearned premium liability.
• B) The outstanding claims liability may be discounted for the time value of money using government bond rates that match the structure and term of the future obligations.
• C) The expected future payments include:(a) unpaid reported claims;(b) claims incurred but not reported;(c) claims incurred but not enough reported; and (d) acquisition costs;
• D) An outstanding claims liability shall be recognised in respect of direct business and reinsurance business and shall be measured as the central estimate of the present value of the expected future payments for claims incurred with an additional risk margin to allow for the inherent uncertainty in the central estimate.
• E) None of the given answers.

---

Definitions:

Effective Communication

The process of delivering a message in a clear, concise, and understandable manner, ensuring it is received as intended.

Newspaper

A printed publication consisting of folded unstapled sheets and containing news, articles, advertisements, and other items of general interest.

Communication Barrier

An obstacle or issue that hinders effective exchange of information or messages between individuals or groups.

Customized Interaction

The tailored engagement between a company and its customers to provide personalized experiences based on individual preferences or needs.