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Stephen Widberg.
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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › discount rate in Pensions
sir unwinding PV of obligation by the discount rate and Debiting the SPL by that figure makes sense, but i am struggling to understand the rationale to unwound FV OF ASSETS by the discount rate?
We are estimating the increase in the value of assets because of investment performance.
But standard requires that we use the same interest rate as that used for unwinding the liabilities
I do not think that you will be asked for the reasons unless you go to the exam for actuaries by mistake