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Stephen Widberg.
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Noah098
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sir unwinding PV of obligation by the discount rate and Debiting the SPL by that figure makes sense, but i am struggling to understand the rationale to unwound FV OF ASSETS by the discount rate?
Stephen Widberg
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We are estimating the increase in the value of assets because of investment performance.
But standard requires that we use the same interest rate as that used for unwinding the liabilities
I do not think that you will be asked for the reasons unless you go to the exam for actuaries by mistake
Noah098
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