Deferred Acquisition Costs

Deferred Acquisition Costs

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Description

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Deferred Acquisition Costs is a term commonly used in the insurance business. It describes the practice of deferring the cost of acquiring a new customer over the duration of the insurance contract. Insurance companies face large upfront costs incurred in issuing new business, such as commissions to sales agents, underwriting, bonus interest and other acquisition expenses. DAC under U.S. GAAP, MSSB and IAS 39 are all very similar, except that IAS 39 only allows direct, incremental costs to be deferred rather than all acquisition costs. Insurance companies incur large expenses when acquiring new business, but to ensure that they comply with GAAP's matching principle they need to spread out these costs over the period in which revenues are earned.show more

Product details

  • Paperback | 60 pages
  • 147.32 x 223.52 x 7.62mm | 113.4g
  • DIC Press
  • United States
  • English
  • 6135829688
  • 9786135829686