Insurance
Reinsurance Bad Debt — Reinsurer Default Provision
Provisioning for potential non-recovery from a reinsurer showing financial distress.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Impairment Loss — Reinsurance Recoverable | Expense (+) | 200,000.00 | - |
| Allowance for Reinsurer Default (ECL) | Contra-Asset (+) | - | 200,000.00 |
💡 Accountant's Note
Reinsurance recoverables must be assessed for credit risk under IFRS 9. If a reinsurer is downgraded or shows distress, an ECL provision reduces the net recoverable. Reinsurer counterparty risk is a significant balance sheet concern.
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