Читать книгу Annual Accounting and Auditing Workshop - Kurt Oestriecher - Страница 89

The targeted improvements are as follows:

Assumptions used to measure the liability for future policy benefits for traditional and limited-payment contracts

An entity must perform the following procedures

1 Review, and if there is a change, update the assumptions used to measure cash flows at least annually.The resulting change in the liability will be recognized in income.

2 Update the discount rate assumption at each reporting dateThe resulting change in the liability will be recognized in other comprehensive income.The discount rate used should be an upper-medium grade (low credit risk) fixed-income instrument yield that maximizes the use of observable market inputs.