Disclosure of RA
Hi graham,
The textbooks states:
Page 11: While the approach selected needs to reflect the compensation that the entity requires for
bearing the uncertainty about both the amount and the timing of the cash flows arising from
non-financial risk, there is no requirement to explicitly disclose these two components of the
RA separately
On page 20: Disclosure requirements for the LIC specify a split between the RA and the LIC
excluding the RA at the entity level.
I want to clarify my understanding here:
Does the first point mean that the RA for the amount of cash flows and the RA of cashflows need not be separately disclosed but (based on the second point) total RA in general needs to be SEPERATELY disclosed then the other components of the FCF? Does this also apply to LRC? (aka RA and LRC excluding RA)?
Comments
Page 11 is specifically talking about not having to split out the RA for the variation in amount of cash flows, and the RA for the variation in timing of cash flows.
Page 20 is talking about how you have to separately disclose the total RA for LIC and the other cash flow components. Yes this is also the case for the LRC