Sample 9

mandatory_coveragesmandatory_coverages
in CAS Sample IFRS 17 Questions

Confused on the convert margin and can't find it in the notes or source material - what is it? how is it calcd? is it somewhere in the material?

Comments

  • Staff-T1Staff-T1

    It's just converting the dollar amount of risk adjustment to a % basis of the BEL. You are usually provided the RA % directly and skip the dollar derivation of the RA. This question is meant to provide you an example of how you actually arrive at that %

  • daviddavid

    What does BEL stand for?

  • Staff-T1Staff-T1

    Best Estimate Loss - Your expected loss basically

  • Justwanta6Justwanta6

    Is there a practice excel file that we can practice calculating Statement of Financial Position - LIC?

  • Staff-T1Staff-T1

    I don't think so, but we can consider doing something for that. I believe there are more than enough questions in the practice exam and sample ifrs17 questions for the LIC calculation

  • kybazzikybazzi

    It's just converting the dollar amount of risk adjustment to a % basis of the BEL. You are usually provided the RA % directly and skip the dollar derivation of the RA. This question is meant to provide you an example of how you actually arrive at that %

    Related to this: why would they have two estimates of AY2023 undisc future cashflows for LOB B (under simulation it's 400k, whereas in the question it's 900k).

  • Staff-T1Staff-T1

    The simulation is mainly to determine the RA%. The actual FCF is probably selected using traditional methods like the CL, BF, etc. This is how it is commonly done in practice

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