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IAS 19 – do I need actuary?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 19 – do I need actuary?

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • November 27, 2015 at 6:42 pm #285774
    weckl
    Member
    • Topics: 12
    • Replies: 18
    • ☆

    Dear Sir, my question is if under IAS 19 does the company have to hire a professional actury, or the company can calculate provision on its own, just using some kind of actuarial assumptions?

    November 27, 2015 at 8:18 pm #285801
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23335
    • ☆☆☆☆☆

    The standard states that actuarial assumptions should be unbiased. If the services of an independent actuary are not used, and the company prepares its own assumptions, how could that be unbiased.

    What’s the problem with engaging the services of an actuary? The cost is hardly likely to break the bank!

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