Non-pro rata earning approaches are generally more complex and involve more estimation than pro rata approaches. As such, the accounting rules may allow the more simplistic pro rata methods to be used where the impact is not material to the financial statements. Earning of deposits, other adjustments There may be multiple possible approaches for earning items such as deposits, interim audits 11 and other such premium components. Where the accounting system does not dictate the earning approach, the overall goal would normally be to choose an approach that focuses on the total earned premium, with as simple.
