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6 reasons why your pension reporting under IAS 19 may not be correct
17 May 2018Actuarial valuation and reporting of a pension scheme under IAS 19 is significantly more complex than other employee benefit plans. Several issues, which after often ignored, need to be understood and allowed for when reporting for pension schemes.
Applicability of Actuarial Valuation on Gratuity Scheme
1 Mar 2018Determine whether your organization requires actuarial valuation for gratuity schemes under AS 15 or Ind AS 19. This guide covers applicability criteria for corporate entities (SMC vs non-SMC), non-corporate entities (Large vs MSME classification), and valuation frequency requirements.
Actuarial valuation of gratuity – sensitivity to assumptions and employee profile
16 Feb 2018What are the factors that will have an impact on the actuarial valuation of gratuity liability? What will be the magnitude of this impact? How was the gratuity liability impacted when the government increased the gratuity limit to ₹20 lakhs? These are questions about the actuarial valuation of gratuity which almost every company’s management team […]
Actuarial valuation of pension liability in corporate transactions
29 Jan 2018During corporate transactions, such as mergers and acquisition, actuarial valuation of pension and other employee benefit schemes is often ignored. The parties involved in the transaction spend most of their time and focus on ‘tangible’ aspects of the balance sheet. They end up taking ‘shortcuts’ or proxy approaches with disastrous consequences for their shareholders. I […]
Why don’t we need actuarial valuation of future salary?
11 Jan 2018We often get asked: is actuarial valuation of future salary needed? Or, why don’t we just calculate the present value of future salary and hold that as a liability, just like we do for gratuity benefits? Though AS 15 and Ind AS 19, both deal with the treatment of all employee benefits (except share based payments), […]
7 issues to consider for auditing actuarial valuation reports
21 Dec 2017The 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 […]
FAQs about discount rate for actuarial valuation
14 Dec 2017Setting the discount rate for actuarial valuation correctly is often not very well understood by the reporting companies. This post summarizes some of the most common questions our clients and their auditors ask about choosing the right discount rate. For a complete overview about setting the discount rate, please refer to this post. 1) What is the […]
How to set the attrition assumption for actuarial valuation
7 Dec 2017The 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.
How to set the salary escalation assumption for actuarial valuation
7 Dec 2017Salary 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.
4 actuarial services to power up your finance function
1 Dec 2017Advanced 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 […]
