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Kingstar bought an insurance policy with coverage period from 1 April 2014 to 30 March 2015. The insurance premium $240mil was paid and recorded as
Kingstar bought an insurance policy with coverage period from 1 April 2014 to 30 March 2015. The insurance premium $240mil was paid and recorded as Prepaid insurance on 1Nov 2013. The company amortized this prepaid insurance for 12 months from Nov 2013. Provide your opinion on this accounting record, and how this impacts on the financial statement in 2013?
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