Which of the Following Is Not a Part of Justice

question 41

Multiple Choice

Which of the following is not a part of Justice Owen's recommendations to the Australian Accounting Standards Board with respect to AASB 1023 "General Insurance Contracts"?

• A) Requirement that premium revenue and insurance liabilities be recognised on the commencement of a contract of insurance.
• B) Requirement that, in estimating the present value of liabilities, future cash flows be discounted using high quality corporate bond rate;
• C) Requirement that companies subject to the standard disclose a 10-year claims-development table that includes past estimates of claims on an undiscounted basis as well as the actual costs of settling claims.
• D) Requirement that insurance liabilities be valued at a level of sufficiency of at least 75 per cent, as required by APRA's prudential standards.
• E) None of the given answers

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Definitions:

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Compensation

The full quantity of cash and other forms of rewards offered to an employee by their employer as compensation for services rendered.

Straight Commission

A compensation model where an employee's pay is based entirely on the sales they generate, with no base salary.

Profit-sharing Plans

A company program where employees receive a portion of the company's profits, linking compensation to the company's financial performance.