Insurance
Deferred Acquisition Cost (DAC) — Initial Recognition
Deferring upfront agent commissions paid to acquire new insurance policies.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Acquisition Costs (DAC Asset) | Asset (+) | 18,000.00 | - |
| Agent Commission Expense (Deferred) | Expense (-) | - | 18,000.00 |
💡 Accountant's Note
Under IFRS 17 and IFRS 4, incremental costs of acquiring contracts (primarily agent commissions) are deferred and amortized over the contract period. This matches the acquisition cost to the revenue it generates.
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