Knowledge Centre
Discount Rate for Actuarial Valuations of Employee Benefits (December 2019)
The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 83 of Ind AS19 reads as under:
Why you should ask for employee wise liability?
Actuarial valuation of End of Service Benefit (EOSB) liability involves the determination of the liability for each and every employee of the organisation. The liability for each employee is calculated as the present value of the accrued benefits using the Projected Unit Credit (PUC) Method, as prescribed in IAS 19 Employee Benefits.
Attrition Rates and Impact on End of Service Benefit Liabilities
Results of actuarial valuations of employee benefits are going to be only as much valid as the assumptions and therefore, enough attention should be paid towards the selection of assumptions used in the actuarial valuations.
Discount Rate for Actuarial Valuations of Employee Benefits (September 2019)
The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 83 of Ind AS19 reads as under:
Discount Rate for Actuarial Valuations of Employee Benefits (June 2019)
The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 83 of Ind AS19 reads as under:
Using wind up liability to validate actuarially determined liability
We often come across clients (and auditors) who want to understand how to validate the high-level movement in the actuarial liabilities during the inter-valuation period or how to perform high level checks on the overall size of the liability to ensure they understand the liability and its drivers.
Discount Rate for Actuarial Valuations of Employee Benefits (March 2019)
The discount rate used in actuarial valuations of employee benefit plans such as gratuity, pension, earned leave etc. is determined by reference to market yields at the balance sheet date on government bonds. Para 83 of Ind AS19 reads as under:
Analysis of Salary Growth Rate assumption adopted by NSE 50 Companies (FY17 and FY18)
Salary growth rate is one of the most important assumptions made while performing actuarial valuation of salary based employee benefit schemes such as gratuity, earned leaves, pensions etc.