13
Expenses
13.1
In accordance with 13.2, a firm’s provision for expenses, whether implicit or explicit, must not be less than the amount required, on prudent assumptions, to meet the total net cost (after taking account of the effect of taxation) that would be likely to be incurred in fulfilling contracts if the firm were to cease to transact new business twelve months after the valuation date.
- 01/01/2016
13.2
The provision mentioned in 13.1 must have regard to the firm's actual expenses in the last twelve months before the valuation date and the effects of inflation on future expenses on prudent assumptions as to the future rates of increase in prices and earnings.
- 01/01/2016