maazzu94
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I believe its because when determining RA under CoC method you need to determine the cost of holding capital (effectively the "compensation" required to onboard a risk) A simple example: Say I have 100 dollars in my bank account and I need to ma…
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@Staff-T1 but that seems to contradict the wiki article directly:
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@Staff-T1 The link you posted was super helpful but I am curious, is this something within the scope of the syllabus? For example could they ask us to release CSM into a provided IFRS17 20.22 statement based on the link you provided? I only ask beca…
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Yes I agree with your logic and its probably the way it is. It just seems antithetical to the concept of prudency in accounting. I suppose as CSM is released and at subsequent measures the LRC and LIC could change and we could record a liability but…
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As a follow-up to this if the LRC= 0 under GMM at initial recognition then that would mean total policy liabilities = LIC + LRC = 0. So adding new contracts under GMM wouldn’t impact our liabilities at all at initial recognition? To me that seems…
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I was reviewing this thread and the summary is that when in doubt assume FCF = PV(Outflows) - PV(Inflows) + RA Could we please add a battlecard to reflect this? It seems like this thread is the only place it has been clarified and it would be a n…
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Thanks for this Graham. I had a chance to review the LRC question you posted specifically and it seems mathematically my approach does match yours. Conceptually it just makes sense that you amortize the financing component over the remaining period …
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I'm going to assume that's a typo. I scanned the IFRS17 - Insurance Contract paper and ceding commissions only came up once related to reinsurance held:
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@miguel I interpret this to mean that its a contra-expense so basically it reduces the expense balance on the P/L.
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Hijacking this thread to refer to the original question regarding the error in formula in the Excel file: I assume based on first principles the accurate version of the formula would be to simply add DAC (net of cancellations) when calculating FC…
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Hello, In the screenshot posted above by a225khan why do we include RA from financial risk in the PV factor calculation? Under section 4 of the LRC wiki article where "Ian-the-Intern was confused": https://battleactsmain.ca/wiki6c/CIA.IFRS17-LRC#…
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Thanks for confirming! I think I got confused because it wasn't listed in the CCIR instructions section