Insurance
Deferred Acquisition Cost (DAC) — Monthly Amortization
Releasing one month of the deferred acquisition cost to the income statement.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Agent Commission Expense (Amortized) | Expense (+) | 1,500.00 | - |
| Deferred Acquisition Costs (DAC Asset) | Asset (-) | - | 1,500.00 |
💡 Accountant's Note
DAC amortization spreads the cost of acquiring the policy over its life. JOD 18,000 DAC on a 12-month policy releases at JOD 1,500/month, matching the cost to the earned premium.
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