ASOP 20: Discounting of Reserves Flashcards Preview

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Flashcards in ASOP 20: Discounting of Reserves Deck (3)
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1

Risk free approach, discounting

Use rate close to risk free rate -- fixed income assets with low investment risk and similar timing characteristics to unpaid losses

2

Portfolio approach, discounting

Anticipated return on a selected asset portfolio

3

Discounting disclosures

Assumptions/support; difference between discounted/undiscounted; risks/uncertainties with timing of payments; any material deviations from ASOP 20; change in assumptions