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Employee Loan Accounting Treatment Under IAS 19 and IFRS 9
31 Jul 2026Interest-free and concessional staff loans create an employee benefit that often goes unrecognised, because the loan sits on the boundary between two standards. This post sets out the employee loan accounting treatment under IAS 19 and IFRS 9, with a worked example showing the profit and loss impact each year.
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, […]
Superannuation fund taxation from employer’s perspective
5 Nov 2025Before we start with taxation on superannuation fund, let us understand what exactly is a superannuation fund. Makes sense, so what is superannuation fund ? Cambridge dictionary defines “superannuation” as “money that people pay while they are working, so that they will receive payment when they stop working when they are old, or the payment they receive when they stop working” So, in simple words, superannuation funds refer to the […]
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 […]
Actuarial valuation of End of Service Benefit under IAS 19 in Saudi Arabia
19 Jan 2020The adoption and implementation of IFRS in the Kingdom of Saudi Arabia (KSA) is a major step towards increasing the transparency and comparability of the financial statements of the companies doing business in the Kingdom. We receive a lot of queries from such companies regarding the impact of this change and the need for actuarial […]
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 […]
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), […]
