Ifrs17

Discussion in 'SA2' started by Norris1, Mar 17, 2022.

  1. Norris1

    Norris1 Member

    Hi
    I’m hoping someone can explain what is the difference between unlocking the CSM(discount rate) and adjusting the CSM for non economic assumptions.

    thanks
     
    Norris1, Mar 17, 2022
    #1
  2. Mateusz

    Mateusz Active Member

    Hi, to unlock the CSM means that it is adjusted to absorb changes in the fulfilment cash flows - this prevents those changes from being recognized immediately in the profit and loss. The CSM can be unlocked, among other things, to absorb the impact of non-economic assumption change (both GMM and VFA) or discount rates change (VFA only). So I think 'unlocking' and 'adjusting' the CSM is the same thing, the main point in the manual is that you'd do it differently depending on the model, is GMM or VFA
     
    Mateusz, Mar 17, 2022
    #2
    1495_sc, Em Francis and Lindsay Smitherman like this.
  3. Norris1

    Norris1 Member

    Thanks that what I thought but wondered why the core reading randomly used different terminology to explain the same thing.
     
    Norris1, Mar 18, 2022
    #3
    1495_sc likes this.

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