Fulfillment cash flow formula

sdeibertsdeibert
in CIA.IFRS17-LRC

Hi, I am wondering why I am seeing different formulas for FCF and if you could please explain the differences to me.

On the IFRS LRC Excel Illustrations sheet, Approach tab, row 13 states the formula as:
= PV(loss + LAE) + RA + PV(attributable costs) + PV(future acquisition costs) - PV(prems receivable)

In the source paper on page 22, it states the formula as:
= future cash in flows - future cash outflows + effect of discounting - RA

I see they are basically opposites of each other so it will be the same number just either + or - depending on the formula, but why are they not the same?

Thanks!

Comments

  • Staff-T1Staff-T1

    Yeah I have noted this a few times over the years to many people. Just use the first definition and ignore the second one

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