LRC under PAA: onerous vs non-onerous

lawtsmlawtsm
edited October 2022 in CIA.IFRS17-LRC

Are the above contradictions?
It seems like LRC is NOT calculated the same way for onerous and non-onerous, under PAA

Comments

  • adipelinoadipelino

    I think since we essentially calculate the LRC excl LC, then load in the LC based on (GMA FCF - LRC excl LC), we effectively do just set it equal to the GMA estimate if onerous. But if they were to ask for LC to be explicitly calculated and we had to calculate LRC excl LC, the first statement does hold

  • Staff-T1Staff-T1

    @lawtsm Yes they aren't calculated the same way for onerous and non-onerous contracts. When onerous the PAA LRC = GMA LRC = PAA LRC excl.LC + LC. @adipelino is also right.
    PAA LRC excl.LC = PAA LRC if and only if the contract is non-onerous

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