Insurance
Actuarial Assumption Change — Prior Year Development
Adjusting reserves due to a change in the mortality, discount rate, or inflation assumption.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Claims Expense (Assumption Change) | Expense (+) | 120,000.00 | - |
| Policy Liability / Claims Reserve (Revised) | Liability (+) | - | 120,000.00 |
💡 Accountant's Note
Actuarial assumptions are reviewed annually. A change in mortality rates, interest rates, or cost inflation can materially change the reserve. The impact is recognized in the period the assumption is revised.
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