I need some guidance on prepaid expenditure relating to the Insurance expense. For example, in a pre-adjusted trial balance as at 30 June 2017, the Insurance expense amounts to R14 304. Additional information states that the entity took out a fire insurance policy on 1 March 2016 and paid an annual premium of R8 496. The next annual premium was paid on 1 March 2017 and amounted to R8 640. So, what exactly will the amount of insurance in the statement of profit and loss and other comprehensive income for the year ended 30 June 2017 will be? According to my calculation, the insurance expense should be (8 496 x 8/12) + (8 640 x 4/12) = 8 544? Only the expenses that were incurred for the year should be included in the insurance expense. Is this perhaps a correct assessment? Thank you very much!