RBC Mini BattleQuiz 4 #2
The question asks for the 4 largest R1 RBC risk charge categories. One of the listed answers is 'other non-insurance subsidiaries' but I don't see that category anywhere in the R1 section of the source text. Am I missing it somewhere?
Comments
In Odomirok 19, page 239, ' other non-insurance subsidiaries' is listed as one of the elements of R1. Further down, the industry aggregation shows it to be one of the 4 biggest components of R1.
Apologies, but I feel like I'm losing my mind. Are we looking at the same edition of Odomirok? I'm looking at the link in the current syllabus and page 239 is chapter 18 (IEE).
https://casact.org/sites/default/files/2021-03/6U_CAS_Financial_Reporting.pdf
I did a ctrl-f for 'other non-insurance subsidiaries' and did not find anything.
I used the edition at this link:
https://www.casact.org/sites/default/files/database/studynotes_odomirok-etal_financial-reportingv4.pdf
Isn't that version (2014) outdated? Shouldn't we be studying the 2020 version?
You're right that the content of R1 is treated completely differently in the 2020 version. We now marked the quiz question as outdated. Thank you for bringing this to our attention.
Thanks for clarifying!
For the same reason, I believe the Calculation Problem (CP) from RBC Mini Battle Quiz 3 (modeled from 2017.Spring #19) is also partially outdated. It references both 'Federal income tax recoverable' and 'Other non-insurance subs' which are no longer listed in the source text.
I think it's still a great CP to test which items go in which category so perhaps it just needs additional assumptions at the top instructing where to put those two items? Just a thought.
Yes, we made the adjustment to the 2017 problem. Thanks.