IFRS sample question #13

user1user1
edited April 16 in CIA.IFRS17-DR

For part b), for the unwinding using spot rates method, why are there two ways/answers to get the unwind?
Also, the question asks for the unwinding of discount during the year 2024 for accident years 2023 and prior. But isn't the solution showing the unwinding of discount during the year 2024, 2025, 2026 for accident years 2023?

Comments

  • MarianneCMarianneC

    I would like to know the answer as well please.
    And also, for the constant yield curve method, why the amount for the first year is not brought to the end of the first period like the other payments (so with a duration of +0.5)

  • Staff-T1Staff-T1
    The two different methods to unwind using spot rates are explained in section 10.2 rows 7 and 9 of the source material.
    No, the solution is basically showing the difference in PV of the liabilities evaluated at the end of 2024 vs beginning of 2024, which is exactly the unwind.
    The first year is not brought to the end of the first period because the payment would have already been made, so it no longer exists anymore at the end of year 1.
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