Actuarial Valuations

Actuarial Valuations

In the context of employee benefits, there are various reasons why you may need an actuarial valuation. The most common reason is to prepare year-end financial statements. The International Financial Reporting Standard 19 (IFRS 19) prescribes the accounting and disclosure for employee benefits. The Standard requires an entity to recognize:a liability when an employee has provided service in exchange for employee benefits to be paid in the future; andan expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits.

Defined benefit plans are classified as post-employment plans where the obligation of the entity is to provide the agreed benefits to current and former employees, usually based on some benefit formulas. Under benefit plans actuarial risk and investment risk fall, in substance, on the entity. If actuarial and investment experience is worse than expected, the entity’s obligation may be increased.

We provide full range of actuarial services including actuarial valuation of gratuity, leave and pension plans.