H
HelloWorld
Member
I am reading Chapter 23, and it is the case that in Question 23.3, is it possible that the free surplus reduction is greater than the PVIF increase because of the discounting effect of the release of reserves in the future to calculate PVIF ?
i.e. So the free surplus is at the present time and the same amount of reserve that reduces the free surplus is released in the VIF calculations. Thus due to the discounting reducing the value of the release of the same reserves that reduced the free surplus then EV falls ?
i.e. So the free surplus is at the present time and the same amount of reserve that reduces the free surplus is released in the VIF calculations. Thus due to the discounting reducing the value of the release of the same reserves that reduced the free surplus then EV falls ?