Excel Practice Problem #1 & #6

chelseamhchelseamh
in CCIR.Instructions

In the solution of question #1, the following items are included in liabilities but are listed as assets on pg 20.10:

  • Assets held for sale
  • Property and Equipment
  • Deferred Tax Assets
    Should these be included as assets, so that equity = 68,987

In the solution of question #6, NRE is subtracted from TIR to find the ISR, however in the article the formula is stated as ISR = TIR - ISE + NRE? Which formula is correct?

Comments

  • Staff-T1Staff-T1

    Yes, I think that is a mistake - Assets held for sale, other debt and deferred tax assets are indeed assets.
    The formula is correct in the wiki. Net reinsurance expense is usually negative which is why you do +(-xxx). I think cell K19 is missing a (-ve) there.

  • grahamgraham
    edited April 4

    @chelseamh, this has been corrected. Thanks! But double-check your final answer above. This is what I got:

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