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EOSB Advance Payment Accounting Under IAS 19
10 May 2026Employers sometimes pay advances to employees against their future EOSB entitlement. The accounting treatment—settlement vs. receivable—depends on documentation and recovery rights. This guide provides a decision framework for finance teams and auditors.
Discount Rate in Saudi Arabia for EOSB Valuation Under IAS 19
31 Dec 2025The discount rate is one of the most significant assumptions in IAS 19 valuations. For Saudi EOSB, using USD Treasury yields or other GCC curves violates the standard’s currency consistency requirement. Learn why SAR-denominated government bonds are the only correct source.
Straight-Line Approach for IAS 19 Reporting of Saudi EOSB Plans
1 Dec 2025Saudi EOSB schemes have a back-loaded benefit structure that triggers IAS 19’s straight-line attribution requirement under paragraphs 70-73. This post walks through the compliance implications with worked examples for actuaries and finance professionals.
New Gratuity Rules India 2025: Labour Code Changes & Actuarial Impact
25 Nov 2025The Social Security Code 2020, which officially came into effect on November 21, 2025, introduces major reforms that will substantially increase gratuity payouts and extend coverage to fixed-term employees across India. This comprehensive guide explains how these changes affect employees, employers, and actuarial valuations. Key Takeaways: India’s New Gratuity Rules 2025 Effective Date: November 21, […]
Understanding actuarial gains and losses in actuarial valuation reports
16 Nov 2025When reviewing an actuarial valuation, one of the most closely examined figures is the movement in actuarial gains and losses. These movements, known as remeasurements under IAS 19, can vary significantly from one year to the next and may have a noticeable impact on a company’s financial position. For organisations with long-term employee benefit schemes, […]
4 issues about actuarial valuation of leave schemes
22 Oct 2025Treatment of leave schemes under AS 15 and Ind AS 19 is widely misunderstood. Companies end up spending resources on actuarial valuation of leave schemes that may not require any, while fail to identify schemes that may require one. Background Companies run several types of leave benefit schemes for their employees. Privilege leaves (also known as earned or […]
Applicability of actuarial valuation on leave schemes
15 Oct 2025Companies often ask us if an actuarial valuation mandatory for leave schemes. It is clear that accounting and audit professionals require some additional guidance on this matter. In this post, we aim at addressing this issue. The short answer is, an actuarial valuation will be applicable if your company offers leave benefits that would require […]
Actuarial valuation of EOSB plans under IAS19 using straight-line approach
19 Feb 2025Introduction End of Service Benefits (EOSB) are a key component of employee compensation, particularly in Saudi Arabia and other neighbouring countries. Under IAS 19 – Employee Benefits, EOSB schemes are typically classified as defined benefit plans, requiring companies to recognise their obligations using the Projected Unit Credit (PUC) method. However, in certain cases, IAS 19 […]
5 ways in which COVID-19 impacts actuarial valuation
21 May 2020Impact of COVID-19 on actuarial valuation COVID-19 pandemic has had a devastating impact on most businesses. One of the areas where companies have been hit hard is the cost of employee benefit schemes. Actuarial liabilities (Defined Benefit Obligation, DBO) have increased significantly, driven by a fall in discount rates. Apart from the adverse impact on […]
Duration of liability for setting the discount rate for actuarial valuation
1 Mar 2019We are often asked questions about what is the “duration of liability” and how it impacts the discount rate use in the actuarial valuation of gratuity and leave encashment. We try to cover a few of these questions in this article. What is duration of liability? Duration of liability can be defined in more than […]
