V
Viki2010
Member
Can I please confirm my understanding of the following paragraph from the core reading?
"The introduction of SII, which does allow credit to be taken for expected future profits (albeit with some restrictions), has meant that such arrangements are no longer so effective, and other types of capital raising have become more attractive."
Is the credit for expected future profits under SII regime accounted for in assets?
Since there is no PVIF (unless special conditions exist) no release of profit margins from assumptions exist (since all are based on BEL).
So how is the credit being taken for expected future profits?
"The introduction of SII, which does allow credit to be taken for expected future profits (albeit with some restrictions), has meant that such arrangements are no longer so effective, and other types of capital raising have become more attractive."
Is the credit for expected future profits under SII regime accounted for in assets?
Since there is no PVIF (unless special conditions exist) no release of profit margins from assumptions exist (since all are based on BEL).
So how is the credit being taken for expected future profits?