Sep 10 Q4

Discussion in 'SP7' started by lwang, Mar 24, 2013.

  1. lwang

    lwang Member

    April 11 Q1

    Hi,

    Sorry would like to ask a different question from the name of the thread. For Paper April 2011 Q1 part 2, why only underwriting years 2007 and 2008 need to be revalued for rates of exchange?

    Thanks for help!
     
    Last edited by a moderator: Mar 24, 2013
    lwang, Mar 24, 2013
    #1
  2. Katherine Young

    Katherine Young ActEd Tutor Staff Member

    Hi Lwang,

    The devaluation occurred at the beginning of 2009. So all amounts which relate to calendar periods after 2009 are already at the current exchange rate. Only the amounts which relate to calendar periods before the start of 2009 are at the old exchange rate.

    Hence, we only need to adjust the top left cell (which is calendar year 2007) and the next diagonal (which is calendar year 2008).

    Kind regards,

    Katherine.
     
    Katherine Young, Mar 26, 2013
    #2

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