SebastienN

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SebastienN
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  • Just closing the loop on this.. For onerous contracts, LRC ex LC is always 0 under GMA. For non-onerous contracts LRC is always 0 since LRC= FCF + CSM. Do you agree with this statement?
    in LC Comment by SebastienN September 2024
  • Just a follow-up about this.. 'It is not true that LRC will be zero when you have a CSM' :are you also talking about initial recognition ? I though that initial recoginition when FCF is a net inflow we set the CSM=-FCF and thus LRC=FCF+CSM=0?
    in LC Comment by SebastienN September 2024
  • 1.So based on your response, under GMM the LC would be equal to the FCF and the LRC excl LC would be 0? 2.Also, let me know if you agree with my following statement: Under GMM: at initial recognition if a contract is onerous (FCF is a net outflow) …
    in LC Comment by SebastienN September 2024
  • Are acquisition costs, cash flows arising from the contract at the date of initial recognition always cash inflows then?
    in Onerous Contracts Comment by SebastienN March 2024