IFRS 17Chapter 3Lesson 1
Fulfilment cash flows: future cash flows, discounting and risk adjustment
Step 1 of 6Learning objectives
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The fulfilment cash flows of a group are the sum of the unbiased estimated future cash flows, discounted, and an adjustment for non-financial risk; the rate and the adjustment are data in the cases.
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Learning objectives
- List the three elements of the fulfilment cash flows.
- Explain the characteristics of an estimate of future cash flows and calculate it by probability weighting.
- Calculate the present value of a cash flow from a given rate and term.
- Distinguish the adjustment for non-financial risk from a margin of prudence and from the effect of financial risk.
- Calculate the fulfilment cash flows of a group from given present values and risk adjustment.