Under Risk Adjustment, it is mentioned that -
1. Companies has discretion to choose one of the three RA calculation methods.
2. they can also set confidence level at their own choice.
If such flexibility is given to companies, then how the objective of harmonization is accomplished across the world using IFRS17? won't it reduce the comparability of financials?
Can you please help me understand the rationale behind the flexibility.
Thanks in advance!
1. Companies has discretion to choose one of the three RA calculation methods.
2. they can also set confidence level at their own choice.
If such flexibility is given to companies, then how the objective of harmonization is accomplished across the world using IFRS17? won't it reduce the comparability of financials?
Can you please help me understand the rationale behind the flexibility.
Thanks in advance!