Problem 69. An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedent receives a repayment of the premiums at a future time if there are no claims under the contract. Effectively this constitute a loan by the cedent that will be repaid in the future. IFRS 4 requires that A. Each payment by the cedent is accounted for as a loan advance and as a payment for insurance cover. B. The insurance premium is accounted for as a revenue item in the statement of income. C. The premium is accounted for under PAS 18 D. The premium paid is treated purely as a loan, and it is accounted for under PAS 39