Advanced actuarial services go beyond the usual realm of actuarial reports or statutory certificates. The ability of actuaries to predict future uncertain events and assess their financial impact can help deliver significant benefits to any organisation. Actuaries are good at making predictions about future uncertain events, and assessing the financial impact of this uncertainty. As […]
There is more to selection of discount rate than simply looking up the interest rates on internet. Many companies don’t realise the complexities involved and need to do more than they are doing currently. Any actuarial valuation involves the use of a ‘discount rate’, which is used to calculate the present value of future benefits promised […]
Indian Accounting Standard Ind AS 102 requires fair value methodology for ESOP valuation. This guide compares three methods – Black-Scholes, Binomial, and Monte Carlo – explaining when to use each approach and their key limitations for finance teams in India.
Setting the right actuarial assumptions is central to the accuracy of any actuarial valuation. However, there is a general lack of understanding among the stakeholders about how the assumptions should be set. No matter how much care is taken in doing an actuarial valuation, the results could still be useless if assumptions are not set […]
Topics such as risk-neutral probability and market-consistent valuation are at the heart of a Risk-Based Capital or an Economic Capital (EC) framework. Yet they continue to remain widely misunderstood. As the insurance regulations continue to evolve, it is important to get a proper grasp of some of these concepts. Here is a list of five […]
Ind AS 19 should be a welcome news for most companies, as the P&L statement will become very stable, as compared with AS 15, and the actuarial losses will flow through the OCI. For companies coming under the ambit of Indian Accounting Standards (Ind AS), the transition from AS 15 is expected to be challenging and the […]