UK Recognising revenue for renewal customers

[aventador123]

Hi all

An example here for company A

Company A sells 1000 policies in a month.

On average 50% renew next year

What is the proper way of recognising this? Is it revenue for the 1000 plus 500 that will renew next year?

 

[Fidget]

No. The 50% that renew next year, renew next year, not this year - i.e they choose to continue with their policy at the point it is due to expire, not at the point they take out the original.