Cash Flows and Discounting

Basically, the level of aggregation used to determine cash flows can differ from the level of aggregation used for the group of insurance contracts if cash flows can be allocated to the group in a systematic and rational way. Cross-effects among different groups might only be determined on a higher level of aggregation (e.g. for participating business) at which they also must be allocated to the groups in a systematic and rational way (which is not specified any further in the Standard).