IFRS 17 requires preparers of accounts to derive discount rates for the valuation of the cash flows associated with their insurance contracts. Conceptually setting a discount rate to reflect the time value of money and thereby to allow an expression of amounts to be paid or received at different future times in terms of a single consistent “currency” is relatively straightforward.
Setting discount rates under IFRS 17: Getting the job done
ByPierre-Edouard Arrouy, Charles Boddele, Thomas Bulpitt, Grzegorz Darkiewicz, Russell Ward, Freek Zandbergen, and Sihong Zhu
13 October 2020
Setting discount rates under IFRS 17: Getting the job done