Deferred acquisition costs concern specified policy acquisition costs recognised over time under an applicable accounting framework.
The distinction that matters
The treatment depends on the reporting standards and period; an older reporting description may not match a current statement.
What to check
- Check accounting standards and notes.
- Identify included costs.
- Compare consistent periods.
Example to discuss
A reader reviews a change in accounting policy before comparing acquisition cost balances.
This is a hypothetical comparison, not a customer claim or a determination of cover.
Jurisdiction and scope
Use the definition in the report being analysed. Changes in business mix, reinsurance, estimation and reporting methods can affect interpretation. These measures do not determine whether an individual claim is covered.
Sources and further reading
General information only. The policy, schedule and applicable rules determine the actual position. For a personal decision, use an appropriately qualified adviser or the relevant provider.