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.
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, […]
All kinds of businesses, in whatever form and size, have expressed a desire to understand the regulatory framework under which actuarial valuations are performed. This is especially true for the most common benefit in India – the gratuity scheme. This blog explains the applicability of actuarial valuation of gratuity under different instances. But before diving into the […]
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 […]
With the rise in start-ups in India, we are observing an increasing trend in share-based remuneration schemes to the employees, the most popular ones being ESOP and SAR. However, we have observed a gap amongst professionals and company personnel, in the knowledge of the different types of schemes and their accounting treatment. As such, in this […]
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 […]
In the ever-evolving landscape of financial reporting standards, staying abreast of the latest changes is essential for professionals in the insurance industry. One such significant development is the International Financial Reporting Standard 17 (IFRS 17), which brings about a fundamental shift in how insurance contracts are accounted for. For actuaries and insurance professionals, understanding IFRS […]
The 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 […]