Decision Tree Example 1 Answer (CIA.IFRS17-LRC)

Example 1: Given the following information about a group of contracts, asses whether the group is onerous and take appropriate action (if any) company has been stable and profitable for the past 10 years no unfavourable trends are projected FCF = 100 LRC ex. LC = 105 LC = 0

Answer:

• Based on the decision tree, a qualitative assessment of facts & circumstances indicates that this group of contracts is non-onerous.
• No further action is required.

Calculate the ∑ of the numbers in the video!