An IAS 19 actuarial valuation is an assessment of a company’s current and future liabilities using an agreed set of financial and demographic assumptions that are based on the actuary’s best estimates, preferably supported by historical data. An IAS 19 actuarial valuation requires skilled personnel, both in qualification and in specific experience and application, to meet the stringent reporting requirements. It makes sense to appoint an experienced actuary to annually perform this task.
In the Middle East and North Africa regions, companies are working towards meeting global best practice standards as set out in the International Financial Reporting Standards (IFRS). Increasingly, auditors and regulators are insisting that companies implement International Accounting Standard 19 (IAS 19).
IAS 19 requires a re-measurement of long-term employee benefits and their corresponding liabilities. Such benefits include End of Service Gratuity Benefits or lump sum termination benefits, which must be valued, validated and certified by an actuary.
Reconcile and validate employee payroll data,engage with your team to set the valuation basis
Calculate the the actuarial cost of liabilities,conclude and make recommendations
An extensive actuarial report and recommendations within five to ten working days.
IAS 19 – Employee Benefits requires entities to use actuarial valuation to determine the present value of its Defined Benefit Obligations. Hence, the entity engages an Actuarial to provide Actuarial Valuation which is mainly an assessment of the Company’s current and future liabilities. In other words, actuarial valuation report is required to measure, recognise and disclose Employee Benefits as required by IFRS under IAS 19. Actuarial Valuation is not simple as it requires estimates and Financial and Demographic assumptions. Financial assumption mainly includes discount rate and salary increase rate whereas Demographic assumptions mainly include mortality rate and employee turnover rate.
We are a team of professionals from FINAtek Solutions with in-depth knowledge of IAS19 Implementation in Saudi market as per Saudi Organization for Certified Public Accountants (SOCPA) regulations. We select and retain professionals who are highly talented and experienced in providing such services. We ensure the client receive delivery of services with highest quality and at the right time. We operate in different regions through our network entities so that clients receive integrated value across their regions.
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while offering our employees the best training.