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Question · Coverage units and the release of the margin

The group of contracts of Cordée SA has a contractual service margin of 6,000 before release. The coverage units provided in the period represent 25 % of the total units provided and expected (case data). Record the entry for the release of the margin for the period, recognised in insurance revenue.

Margin before release
6,000
Share of coverage units of the period (case data)
25 %
Your answer
  1. Line 1

    Account Insurance contract liability (margin released)

  2. Line 2

    Account Insurance revenue

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