Which best describes the conditions of insurance risk under IFRS4?
A)At least one of: the possibility of the event; when it will occur or how much needs to be paid if it occurs must be uncertain at the inception of the contract
B)All of: the possibility of the event; when it will occur and how much needs to be paid if it occurs must be uncertain at the inception of the contract
C)At least one of: the possibility of the event; when it will occur; if the premiums will be paid or how much needs to be paid if it occurs must be uncertain at the inception of the contract
D)All of: the possibility of the event; when it will occur; if the premiums will be paid or how much needs to be paid if it occurs must be uncertain at the inception of the contract

Question

Quizplus · Accepted Answer

According to IFRS4, insurance risk exists when at least one of the following is uncertain at the inception of the contract: the possibility of the event occurring, when it will occur or how much needs to be paid if it occurs. Therefore, option A describes the conditions of insurance risk under IFRS4, and is the best choice.

Which Best Describes the Conditions of Insurance Risk Under IFRS4