Insurance

Broker Commission Payable — Outward

Accruing the commission owed to the placing broker for new business written through the broker channel.

Account NameTypeDebit ($)Credit ($)
Broker Commission Expense (Outward)Expense (+)2,400.00-
Broker Commissions PayableLiability (+)-2,400.00

💡 Accountant's Note

Brokers earn commission (typically 15-25% of premium) for placing business with insurers. The commission is an acquisition cost and should be treated as DAC if IFRS 17 capitalization criteria are met.

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