Chapter 23-24: Supervisory Reserves and Capital Requirements Flashcards
1
Q
Reserving has a HUGE impact on:
A
Profit emergence
2
Q
Reasons for calculating reserves (4)
A
- statutory requirements
- financial reporting
- tax
- internal requirements (profitability, management)
3
Q
Total liability for UL comprises of (2)
A
- unit fund
- non-unit fund
4
Q
Aim of risk-based capital:
A
- To set aside an extra amount of capital where the amount is appropriate to the extent of the risks involved
