[GNC] How to account for insurance policy profit participation?

[Derek Atkins]

I suggest you contact a local accountant to help answer the question "how
to account for it".  Then once you have an answer, we can help you with
the question "how to account for it in GnuCash".

-derek

On Tue, July 13, 2021 11:41 am, rsbrux via gnucash-user wrote:
> We have an insurance policy with a guaranteed return at maturity as well
> as profit participation (Überschussbeteiligung) which is calculated
> annually.  Presumably both are some kind of investment income, but it is
> unclear to me how to account for them.  I suspect that the guaranteed
> return should be classified as interest, but should I record it in
> GnuCash annually or only at maturity?
>
> The profit participation is a complete mystery to me.  This is a share
> of the insurer's profits which accrues to the policies in years when the
> insurer achieves haigher returns on its (capital) investments than a
> predetermined threshold.  Is this a capital gain?  How should I record it?
>
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-- 
       Derek Atkins                 617-623-3745
       derek at ihtfp.com             www.ihtfp.com
       Computer and Internet Security Consultant