Carrying amount of LRC at initial recognition - formula error?

bulubalabulubala
edited October 2022 in CIA.IFRS17-PAA


I believe it should be plus "the derecognition of assets for acquisition cash flow". In other words, minus the derecognized asset for acquisition cash flow.
Let's say we have an asset for acquisition cash flow of 100 for future contracts last year. When we recognize those "future contracts" this year, 100 needs to be subtracted from LRC and asset for acquisition cashflow of 100 is derecognized.

Same logic applies to the previously recognized liabilities - it should be adding liabilities previously recognized.
In any case, I feel it's much safer to use CIA's own wording:

Comments

  • Staff-T1Staff-T1

    Tbh maybe I am not seeing it but the wiki seems fine to me in terms of how I would translate it into the actual PAA formula.

    I believe it should be plus "the derecognition of assets for acquisition cash flow". -> Refers to the third bullet

    Let's say we have an asset for acquisition cash flow of 100 for future contracts last year. When we recognize those "future contracts" this year, 100 needs to be subtracted from LRC and asset for acquisition cashflow of 100 is derecognized. -> Refers to the second bullet

  • bulubalabulubala
    edited October 2022

    @Staff-T1
    No I don't agree.

    "Let's say we have an asset for acquisition cash flow of 100 for future contracts last year. When we recognize those "future contracts" this year, 100 needs to be subtracted from LRC and asset for acquisition cashflow of 100 is derecognized. -> Refers to the second bullet"
    It is not second bullet, it is referring to third bullet.

    I'm not sure how to convince you but you didn't convince me either so we are even. I will go with the source text wording. I just feel Battleacts' translation for the "derecognition part" is wrong

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