Discounting future acquisition costs (Q17 vs. Q18)

kybazzikybazzi
in CAS Sample IFRS 17 Questions

In Q17, future acquisition costs are calculated without discounting.

In Q18, future acquisition costs are provided as discounted amounts.

Why weren't they discounted in Q17? Other attributable costs, for example, were discounted.

Comments

  • Staff-T1Staff-T1
    For Q17, they're calculating it as a % of your premium which are received at time 0 hence no discounting needed
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