- This topic has 1 reply, 2 voices, and was last updated 11 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Dear, Mike
Would you explain for me the treatment for this case:
“On 1 oct 2012, Moby received a renewal quote of 400,000$ from the company’s property insurer. THe director was supprised at how much it had increased and believed that it would be less expensive for the company ” self-insure” . Accordingly , they charged 400,000$ to administrative expense and credit same amount to provision.
During the year , the company incurred 250,000 of expense relating to the previous property damage which had been debited to provision.Why if the company choose the ” self issued” it can not create the provision equal to the third party premium?
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.