GIM2110 - Accounting framework: annual accounting: Unearned Premium Provision (UPP): example
| Contract No. |
Date entered into |
Premium |
|---|---|---|
| 1 |
1/1/07 |
300 |
| 2 |
27/2/07 |
450 |
| 3 |
1/6/07 |
600 |
| 4 |
5/9/07 |
500 |
| Total premiums |
|
1,850 |
| Contract No. |
24ths Method |
UPP |
365ths Method |
|
|---|---|---|---|---|
| 1 |
1/24 x 300 |
13 |
0/365 x 300 |
0 |
| 2 |
3/24 x 450 |
56 |
57/365 x 450 |
70 |
| 3 |
11/24 x 600 |
275 |
151/365 x 600 |
248 |
| 4 |
17/24 x 500 |
354 |
247/365 x 500 |
338 |
| Total UPP |
|
698 |
|
656 |
