S
Spookiee
Member
Hey guys,
Does anyone know how to interpret or go about negative reserves when doing the projected revenue account? I know that negative reserves imply that the EPV of the premium income > than the EPV of the future outgo on benefits and expenses. Therefore should I multiply all the interest on reserves by -1 and make the positive ones become 'losses' or expenditure, and the negative ones positive income?
Thanks in advance.
Does anyone know how to interpret or go about negative reserves when doing the projected revenue account? I know that negative reserves imply that the EPV of the premium income > than the EPV of the future outgo on benefits and expenses. Therefore should I multiply all the interest on reserves by -1 and make the positive ones become 'losses' or expenditure, and the negative ones positive income?
Thanks in advance.