Actuarial Valuation and Actuarial Valuation of Leave Encashment

Actuarial valuation of gratuity and actuarial valuation of leave encashment both form a part of AS 15 employee benefit plans. 

Actuarial valuation of gratuity and actuarial valuation of leave encashment includes –

• Calculating expenses that should be recorded on Profit and Loss statements
• Calculating Balance Sheet Liabilities

In doing above, we help you with determining the correct value of the benefits offered.We assist you in determining assumptions for both Actuarial valuation of gratuity and actuarial valuation of leave encashment, based on your experience and factors relevant to you, so that the charge to P&L and liability in Balance Sheet is neither over stated nor understated. At KPAC, we help you quantify and understand the key risk drivers and their impact on scheme funding as well as the interaction between funding and investment strategies. 

Actuarial valuation of gratuity is usually a defined benefit plan whereas actuarial valuation of leave encashment is usually treated as long term employee benefit plan.