GMM v PAA - Onerous v Non-Onerous (Sec 5.6)

acassoonacassoon
in CIA.IFRS17-LRC

For RA, GMM needs RA whereas PAA does not for non-onerous. How about onerous contracts?

Comments

  • cornedovcornedov

    LRC under PAA does need a RA if it is onerous

  • Staff-T1Staff-T1

    There's no need for a RA under the PAA method for LRC. If a GoC is onerous, then you are basically using the GMA method to calculate your LC

  • Justwanta6Justwanta6

    "If a GoC is onerous, then you are basically using the GMA method to calculate your LC". In section 7, the way LC is calculated is FCF - LRC excl. LC ( I assumed calculated using PAA). So here the LRC excl. LC should be calculated using PAA right?

  • Staff-T1Staff-T1
    LRC excl LC is a PAA concept exclusively and is always UEP - DAC. There's no such thing as a LRC excl LC under the GMA
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