Pre-requisite to this post: Review of International Accounting Standard (IAS) 19- Employee Benefits  In order to illustrate the IAS Disclosures that will be prepared for the given simple example let us first assume the following: Emily is the only employee covered by the plan
In the previous post we looked at the IAS 19 Disclosure relating to the reconciliation of present value of defined benefit obligations and fair value of assets to the assets (liabilities) recognized in the balance sheet. In this post we illustrate the disclosure related to
IAS 19 Disclosures Example: Reconciliation to Assets and Liabilities recognized on the balance sheet
A look at the disclosure showing the reconciliation of the actuarial liability and fair value of assets to the assets and liabilities that are recognized in the balance sheet.
IAS 19 Disclosures Example: Reconciliation of Present Value of Defined Benefit Obligation and Fair Value of Assets
A look at some of the disclosures made under the IAS 19 requirement.
The results of the gratuity valuation need to be tested for their sensitivity to key actuarial assumptions. Continuing with our simple example, we have carried out a sensitivity analysis on the Discount Rate and Salary Increase assumptions.