Liability Adequacy Test (LAT)
{"Image DocumentName": "Liability Adequacy Test (LAT)", "Image ImageDescription": "Shall carry out a LAT at each reporting date if no test meeting IFRS 4 minimum requirements already in place. Uses current estimates of insurance contracts\u2019 future cash flows. Any deficiency in liabilities to be recognised immediately in profit and loss account. LAT required for what is not accounted for at FV: IAS 39 contracts valued at amortised cost. Insurance contracts products not at FV. Contracts with a DPF not at FV. LAT may be an issue if: High guaranteed interest rates are not matchable by assets. Deterioration in anticipated experience from technical basis. Allowance for expenses in technical basis not adequate. Deferred acquisition costs not all recoverable. For insurers with a current requirement to test for loss recognition, then there may be no need to amend practice, provided the test is carried out using the most up to date information and is at least as prudent as the test set out in the ED.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}