1. avatar says

    Mr. Little, this issue has always plagued me but I’ve never received a definitive answer. Assuming to question doesn’t tell us how much days to use like Illustration 2 of Employee Benefits chapter, is it allowable to say, 10000/(52*5). Generally people work 5 days, so it certainly is another way of calculating it. Can we make this choice, or has the examiner stipulated to use 365 days as a standard year.

    Thanks. I know it might be a very basic and possibly stupid question, but I’d like to know this for future reference. Thanks.

    • Avatar of MikeLittle says

      @prateshramjohn, Graham Holt will normally tell you how many days to use. You say 52*5 – do you not have holidays?

      It could be 366, 365, 350 ( assuming 2 weeks holiday ), 340 ( assuming 2 weeks holiday and some “national holidays” ). 300 ( 50 weeks * 6 ), 250 ( 50 weeks * 5 )

      If it’s important ….. he’ll tell you!

    • Avatar of MikeLittle says

      @suhailissa, No, I need to re-record them to take account of the changes to the calculation of net interest cost, remeasurements and end of the 10% corridor ( if you didn’t know about the 10% corridor, don’t ask )

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