Question

    Which accounting method is used for long-duration insurance contracts under IND AS 104?

    A Historical cost method Correct Answer Incorrect Answer
    B Fair value method Correct Answer Incorrect Answer
    C Amortized cost method Correct Answer Incorrect Answer
    D Expected cash flow method Correct Answer Incorrect Answer
    E Discounted cash flow method Correct Answer Incorrect Answer

    Solution

    Explanation: IND AS 104 requires the use of the Expected Cash Flow method for measuring and recognizing the insurance contract liabilities.

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