CCIR.Instructions Provision for Credit Losses
Should "Provision for Credit Losses" be added or subtracted from Net Investment Income to calculate Investment Return?
In BA, we have Provision for Credit Losses subtracted. But in 2023 IFRS 17 P&C Section IV - Detailed Instructions, it is instructed to have it added to NII to get Investment Return.
Comments
Provision for credit losses should always be subtracted from Net income in the financial industry in general. It's probably cause it is shown as a negative amount in the FS, so you add it. I think just remember that it should reduce net income and you'll be fine
Perfect, thanks for the clarification!