Insurance
Reinsurance Recoverable on Paid Claims
Recording the amount due from the reinsurer after settling a large claim.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Reinsurance Recoverable (Current Asset) | Asset (+) | 80,000.00 | - |
| Claims Expense (Net of Reinsurance) | Expense (-) | - | 80,000.00 |
💡 Accountant's Note
The cedant settles the full claim to the insured and then recovers from the reinsurer. The recovery receivable is recorded net of any deductible or retention. ECL on reinsurance recoverables is required under IFRS 9.
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