UK Double entry for annuities

[Kelpot86]

Hi,
I have an interview where I am going to be asked technical questions on accounting for annuities (the kind that are a sort of retirement income insurance). How are these accounted for in the ledgers/PL/Bal sheet? Google isn't making it particularly clear.
Thanks in advance for any help.
Kelly

 

[Steve-LevelUp]

That is certainly a specialist question. I recommend getting a good ole accounting textbook and looking up annuities. I know how I would book annuities, however, I do not work in that industry. I don't want to provide you with the wrong information. Best get this information from a reliable source.

 

[bklynboy]

Is it from the POV of the seller or buyer of annuity? Seller accounting is much more complex. Buyer is much easier. By saying retirement income annuity this is akin to a pension for people that want a payment for life. Not sure why a company would buy these so I think its form POV of seller? Let me know as I work for an insurance company and we sell loads of this and I can likely help with accounting at least at a high level.