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Knowledge Centre

Discount Rate for Actuarial Valuations as per AS15 / IAS 19 / Ind AS 19 as at December 2018

The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 78 of AS15 reads as under:

Key Considerations in EOSB Valuations

Actuarial valuation of employee benefits is not just about one figure that needs to be booked in accounts. It is also about understanding and managing the liability and about mandated detailed disclosures in financial statements.

Accounting for KSA End of Service Benefits

The International Accounting Standards Board (IASB) intends to achieve the vision of one global accounting standard. Adhering to this, the Saudi Organization for Certified Public Accountants (SOCPA), which is the key Authority

Discount Rate for Actuarial Valuations of Employee Benefits (September 2018)

The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 78 of AS15 reads as under:

Discount Rate for Actuarial Valuations of Employee Benefits (June 2018)

The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 78 of AS15 reads as under:

Using wind up liability to validate actuarially determined liability

We come across many clients who question us on the size of actuarial liability. We also come across many clients who question us on the movement in actuarial liability during the year. Finally, we also come across many new clients who are not sure of how their previous liabilities were calculated and hence the movement in the liability in the current year.

Discount Rate for Actuarial Valuations of Employee Benefits (March 2018)

The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 78 of AS15

Analysis of Salary Growth Rate assumption adopted by NSE 50 Companies

Salary growth rate and discount rate are the two most important assumptions adopted while performing actuarial valuation of salary based employee benefit schemes such as gratuity, earned leaves, pensions, etc.