8.6.3.5 Assumption Legs

This option determines if only the off-set leg or both the primary and the off-set legs are required for the purpose of specifying the business assumption value as part of the assumption specification section. This is based on the type of business assumption being specified. For instance, in case of rollover, prepayments, Run-offs etc. assumption values are applied only to the off-set leg as the primary leg of the transaction has already occurred in the past. However, in case of a new business assumption, such as deposit growth, both the primary leg (amount deposited) and the off-set leg (repayment of amount deposited) are required as both legs occur in the future. This selection is determined by the assumption sub category selected. In the case of sub categories where only one option is applicable, the selection has been defaulted to One in an un-editable mode. In cases where both values are applicable, Two can be selected.

The following options are present:

• One: In case, One is selected as assumption leg, then only column appears for entering the off-set assumption value.
• Two: In case, Two is selected as the assumption leg, then two columns appear for entering primary assumption value and secondary or off-set value.