I have two questions regarding the information of insurance policy (for the insurance company). Please read below.
When these payments have a substantially different pattern from that of the consequential benefits and risks transferred, they present particular challenges in providing useful, meaning ful and representationally faithful treatment of the associated cash flows.
First question: What is representationally?
Of course I can assume this word relates to "representation" but could not find in dictionary. Would someone give me any other words which may have close meaning to representationally?
...they present ... challenges in providing a useful, meaningful, and accurate picture of the associated cash flows.
Second: the consequential benefits and risks transferred
What does "consequential benefits" mean in this sentence? Or should I read as "the consequential (of) benefits and risks (which have been transferred)"?
I take "consequential benefits and risks" to mean benefits and risks that arise as a result of some [herein unspecified] action.
It's my thinking that this wasn't written to be easily understood by the layman. I don't understand it, but perhaps it would be perfectly clear to the likes of an accountant or actuary or somebody who works with statistics.
Student or Learner