Coverage Units provided in the Reporting Period" and Beginning

wilsonchan18wilsonchan18
in CIA.IFRS17-LRC

Hi,

I have some issue to understand the equivalence between the CU Reporting Period and CU Beginning Balance?
How can they be the same?

Or put it this rather than using Beg and Ending, The Amortization Rate should be The CU in the Sub-Period divided by The Total CSM in the Total Period?

Thanks and Warm Regards,
Wilson

Comments

  • Staff-T1Staff-T1

    For your first question - It's defined as a Coverage Unit in the reporting period in the source. Graham just defines it as beginning CU so it ties into the ending CU. There is no such thing as a CU Beginning balance in the material

    As to your second statement -> That is incorrect. In the example, dividing the CU by total CSM would give you an amortization rate of 1 every where. (1000/1000)
    Amortization rate = coverage units in reporting period/ remaining coverage units

  • wilsonchan18wilsonchan18

    Got You, thanks :)

Sign In or Register to comment.