Knowledge-Centre

Knowledge Centre

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.

Past Service Cost – AS (AS15) vs. IFRS (IAS19) and IND AS19 vs. US GAAP (ASC715)

When performing an actuarial valuation of employee benefit scheme (such as gratuity valuation), we perform movement analysis of the liability i.e. reconcile opening PVO (Present Value of Obligation) to the closing PVO.

Actuarial Practice Standard (27) Employee Benefits issued by Institute of Actuaries of India

Financial reporting in India underwent a transformation owing to the adoption of Indian Accounting Standards (Ind AS) that are converged with IFRSs.

Discount Rate for Actuarial Valuations of Employee Benefits (December 2017)

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.