ACCA December 2022 Exam results:
* Pass rates * Comments * Instant Poll * Competition *

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Employee benefits

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

Viewing 2 posts - 1 through 2 (of 2 total)

Author
Posts
May 11, 2021 at 10:12 am #620289
rashard
Member
- Topics: 16
- Replies: 30
Hi Chris/ Stephen,
How is the pension liability calculated? In the Kaplan book it is given salary at retirement * (no.of years worked/60 years) and discounted to PV. So the calculations are done when the employees leave the company? If so, how does it change the value of obligations when a curtailment occurs?
May 11, 2021 at 11:21 am #620294
Stephen Widberg
Keymaster
- Topics: 11
- Replies: 2837
Actuaries do all horrid calculations.
If Q says that the liability goes up or down by 10 because of curtailment, treat it like any other service cost:
Dr or Cr P&L
Dr or Cr Liability.
Author
Posts

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.