Employers 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.
The Saudi Arabia discount rate for December 2025 ranges from 4.04% (6 months) to 6.21% (30 years), with a 217 bps term premium. Strong trading volume of SAR 36.8 million and 78.5% smoothing alpha indicate high curve reliability. Applicable to IAS 19 employee benefits, IFRS 17 insurance contracts, and IFRS 9 ECL calculations.
The 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.
Saudi 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.
The 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 millions of contract workers 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: […]
When 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, […]
Treatment 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 […]
Companies 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 […]
Introduction 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 […]
Impact 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 […]