Document Type

Article

Publication Date

1973

Abstract

In the past two years a number of companies in the property and casualty insurance field have adopted the accounting policy of making a provision from each period's income to cover a portion of major losses expected to occur in future periods. The reserves provided, generally called catastrophe reserves, have been justified by the companies on the grounds that periodic premiums include an amount to cover such losses which occur irregularly and the process of matching revenue and expense therefor requires accrual of a provision for such losses.

Relational Format

article

Series Title

Accounting Series Release No. 134;Securities Act of 1933 Release No. 5345;Securities Exchange Act of 1934 Release No. 9923

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