Insurance
IFRS 17 — Premium Allocation Approach (PAA) Revenue
Recognizing insurance revenue under the simplified PAA for short-duration contracts.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Liability for Remaining Coverage (LRC) | Liability (-) | 100.00 | - |
| Insurance Revenue (PAA) | Revenue (+) | - | 100.00 |
💡 Accountant's Note
The PAA is a simplified IFRS 17 approach for contracts of 12 months or less (most general insurance). Revenue is recognized in line with the passing of coverage period — essentially a straight-line release of the LRC.
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