Simplified Example

AndrewLAndrewL
in CIA.IFRS17-DR

In the simple example, we are given liquidity premium. Does that refer to ALP or LLP?

In the bottom up approach we got DR=2.45%. Could we technically use that for both Asset and liability or we would need to make further assumption?

Comments

  • Staff-T1Staff-T1

    Where exactly are you referring to in the simplified example?
    You'll need to tell me exactly what you are referring to when you mention 2.45% (Page number or Excel file)

  • AndrewLAndrewL

    1. Is 0.60% the ALP or LLP?
    2. Can we use DR=2.45% to discount both asset and liabilities?

    Thanks

  • Staff-T1Staff-T1
    1. It is the liability illiquidity premium
    2. Yes - You can refer to section 4.5 of the source for more details on this
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