Appendix C SH1 -LRC (Non - Onerous)
Why is LRC under GMA is 0 for non-onerous? Also, where can I find the information in iFRS17 section that states LC = max(0, GMA-PAA)? Does this formula always hold?
It looks like you're new here. If you want to get involved, click one of these buttons!
Why is LRC under GMA is 0 for non-onerous? Also, where can I find the information in iFRS17 section that states LC = max(0, GMA-PAA)? Does this formula always hold?
Comments
It's 0 because at initial recognition, you set the CSM to perfectly offset that FCF.
Section 5.3 of the LRC paper. Yes, the formula holds as long as you are using PAA