Question 1

Why is Actuarial Valuation required?

Accepted Answer

Actuarial valuation is an accounting exercise performed to estimate future liabilities arising out of benefits payable to employees of a company like gratuity, pensions and provident funds. These benefits are not paid immediately, but accrue over the term of employment of the employee. Hence, they need to be estimated and a provision must be made in the book of accounts of the company.

Question 2

What are the various accounting standards?

Accepted Answer

Actuarial valuations are mandated by various accounting standards such as IND AS 19, AS – 15(R) , US-GAAP, IFRS etc. Under these accounting standards, actuarial valuation is performed to estimate the liability and make provisions for the same in the balance sheet.

Question 3

Where can I find the data format for actuarial valuation?

Accepted Answer

For actuarial valuation, employee data of a company is to be provided such as employee name, date of birth, date of joining, salary etc. Our data format is tailored as per the requirements of Schedule III of The Companies Act and is available on our website.

Question 4

What are the services you provide?

Accepted Answer

Our wide range of actuarial services include annual actuarial valuation for gratuity, leave, pensions, medical benefits, provident fund, ESOP valuations, retirement benefit consulting, funding valuations and actuarial consulting.

Question 5

Where can I find sample reports for IND AS 19 and AS 15?

Accepted Answer

Sample or model actuarial valuation reports can be obtained which are modelled based on the IND AS 19 and AS 15 accounting standards and contain a model of all the disclosures required under these accounting standards.

Question 6

How to do actuarial valuation?

Accepted Answer

Actuarial valuation is performed by a qualified actuary to disclose employee benefit obligations for reporting companies as per various accounting standards such as IND AS 19, AS 15(R), US GAAP etc. This is performed for gratuity, leave, pension and other schemes. Contact us to find out how we can help you with the process.

New Wage Code (2019)