The usual approach taken by auditors in reviewing and validating actuarial valuation reports requires a fundamental shift. Often the approach used fails to uncover significant errors. Audit of actuarial valuation reports is a challenging task. Reviewing a piece of work of such a technical nature is a significant ask from anyone who doesn’t have an […]
The employee attrition rate is one of the assumptions the reporting entity, not the actuary, is responsible for setting — and getting it wrong misstates the balance sheet. This guide covers how to set it for gratuity and leave in India and for EOSB schemes in the GCC, including how attrition actually moves the liability under each.
Salary escalation is one of the two financial assumptions that drive an actuarial valuation, and unlike the discount rate it rests almost entirely on management’s own judgement. This guide covers what the standards require, how the assumption must stay compatible with the discount rate, and which salary base to escalate under the new labour codes.
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 […]