Pavane SA measures a group of contracts on initial recognition. It expects to pay 2,205 of claims in two years and to receive 3,150 of premiums in one year. Case data, from management's judgement: the discount rate is 5 % (a rate not imposed by the standard) and the risk adjustment for non-financial risk is 400. Calculate the present value of the outflows, the present value of the inflows and the fulfilment cash flows of the group (a negative amount means a net inflow).
- Claims to be paid in two years
- 2,205
- Premiums to be received in one year
- 3,150
- Discount rate (case data)
- 5 %
- Risk adjustment for non-financial risk (case data)
- 400