Pardon if this question has been asked before… May a company - TopicsExpress

Pardon if this question has been asked before… May a company recognize a prepayment out of a supplier invoice which bills a one year insurance charge but the invoice will only be due for payment after 90 days? On Nov. 1 2013, a contractor received an invoice for Contractor-All-Risk insurance cover from its insurers for the project period of 12 months. The invoice is due for payment on Jan. 31 2014. Question: Is it proper to recognize “Prepaid insurance” on Nov. 1st? Will you please quote the appropriate rule?

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