Realistic Balance Sheet - chapter 11

Discussion in 'SA2' started by tomas, Sep 14, 2008.

  1. tomas

    tomas Member

    It says that for RBLF you can add to the assets the present value of future profits from without profit business if it is written in the with-profit fund so the value of assets increases under Realistic Balance sheet
    But ... concurently we should add that on the liability side of RBSheet we must increase the future policy-related liabilties because of the expectation that higher bonuses will be granted thanks to PVFP from WOP policies

    In my opinion when we mantion only the increase on the assets side it gives the false feeling that we have extra gain from this.
     

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