10-23-2010, 09:09 PM
By the way IAS 19 clearly says that actuarial assumptions, and calculations are required for determining the defined benefit obligations. For reference see paragraph 48, 49, 50 and 54 of IAS 19 (2009 edition).
However, IAS 19 states that it encourages, but does not make it mandatory, that qualified actuary should be involved in the determination of all defined benefit retirement obligations.
Usually the companies do not have persons who can perform actuarial calculations and develop accurate assumptions, therefore, independent qualified actuaries are involved for this work.
If a company has such capable staff who can perfrom this task; and the auditors of such company based upon their knolwedge or upon involvment of some expert, are satisfied with their working and results, such calculations may serve the purpose. However, in significant majority of the cases this is a least possibility.
Regards,
However, IAS 19 states that it encourages, but does not make it mandatory, that qualified actuary should be involved in the determination of all defined benefit retirement obligations.
Usually the companies do not have persons who can perform actuarial calculations and develop accurate assumptions, therefore, independent qualified actuaries are involved for this work.
If a company has such capable staff who can perfrom this task; and the auditors of such company based upon their knolwedge or upon involvment of some expert, are satisfied with their working and results, such calculations may serve the purpose. However, in significant majority of the cases this is a least possibility.
Regards,
