Investment yield - 2019 spring 21-a vs 2019 fall 23-a

OnePassOnePass
in MSA.Ratios

Hi there,

I’m probably extremely late to the party, but here is my question regarding the calculation: the formula I use is 2(Net inv inc + Share of net income/loss of equity accounted investees)/(cash + investment assets of the current and prior year - Net inv inc - Share of net income/loss of equity accounted investees)100.

While I as doing 2019-fall-23-a-iv, sample one used OCI instead of assuming Share of net income/loss of equity accounted investees = 0. While I was doing 2019-spring-21-a-i, neither sample used OCI (I think OCI can be calculated using E_t - E_t-1- NI_t, and NI_t can be calculated too). Could you please advise if I miss any conditions for us to use OCI?

Thank you ahead for your time!

Regards,

Comments

  • adipelinoadipelino

    the formula with share of net income/loss is the CCIR instructions version used in the PC3 return. However I believe it's (Investment return + share of net income/loss...)
    not (Net II + share of net income/loss...)

    The MSA ratio formula uses (Net II + OCI) if it's adjusted investment yield. If just 'investment yield' then only Net II is used.

  • Staff-T1Staff-T1
    edited October 2022

    You will be fine to use either the CCIR or MSA formula as mentioned in the Fall 2019 sample examiner's report. The question is ambiguous and normally we will accept any interpretation from the candidate as long as it is reasonable and based on the syllabus

  • OnePassOnePass

    Thank you both for answering, I understand it now:)

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