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Discount Rate for Actuarial Valuations as per AS15 / IAS 19 / Ind AS 19 as at December 2018
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 78 of AS15 reads as under:
Key Considerations in EOSB Valuations
Actuarial valuation of employee benefits is not just about one figure that needs to be booked in accounts. It is also about understanding and managing the liability and about mandated detailed disclosures in financial statements.
Accounting for KSA End of Service Benefits
The International Accounting Standards Board (IASB) intends to achieve the vision of one global accounting standard. Adhering to this, the Saudi Organization for Certified Public Accountants (SOCPA), which is the key Authority
Discount Rate for Actuarial Valuations of Employee Benefits (September 2018)
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 78 of AS15 reads as under:
Discount Rate for Actuarial Valuations of Employee Benefits (June 2018)
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 78 of AS15 reads as under:
Discount Rate for Actuarial Valuations of Employee Benefits (March 2018)
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 78 of AS15
Analysis of Salary Growth Rate assumption adopted by NSE 50 Companies
Salary growth rate and discount rate are the two most important assumptions adopted while performing actuarial valuation of salary based employee benefit schemes such as gratuity, earned leaves, pensions, etc.
Past Service Cost – AS (AS15) vs. IFRS (IAS19) and IND AS19 vs. US GAAP (ASC715)
When performing an actuarial valuation of employee benefit scheme (such as gratuity valuation), we perform movement analysis of the liability i.e. reconcile opening PVO (Present Value of Obligation) to the closing PVO.