Page 12, Chapter 30, about the assertion for data used in modelling process, there are two points seems similar, could not catch the difference between, that, a liability or asset exists on a given date; a liability is held or an asset is owned on a given date. What's the difference betwee above two? who could help? thanks in advance.
I can see why you are questioning this, as they are quite similar! I'm thinking we could differentiate them as follows: If we think about assets, it might be: a) check firstly that a bond hasn't already redeemed at that time (first bullet point) and then b) also check we still own that bond (second bullet pt). If we think about liabilities, say for a pension scheme then: a) we check that member is still alive, (ie liability exists as per first bullet point) but then b) also check liability still remains with scheme, eg not transferred out or bought out with an insurance company (second bullet point).
