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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.
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, […]
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 […]
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 […]
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.
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.
