Future cash flows to include

Learning objectives

• Explain that estimates of future cash flows are explicit, unbiased, probability-weighted and current.L2
• Identify the cash flows to be included in or excluded from the estimate from the facts of a case.L3

Normative references

• IFRS 17 §33Estimates of future cash flows include all the cash flows within the boundary of each contract; they incorporate, in an unbiased way, all reasonable and supportable information available without undue cost or effort (expected value of the range of possible outcomes), reflect the entity's perspective while being consistent with observable market prices, and are current and explicit.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Which statements about estimates of future cash flows are correct? More than one answer is possible.L2