Actuarial Valuations – our services | KPMG | BE

Actuarial Valuations – our services

Actuarial Valuations – our services

We are experienced in carrying out end-to-end actuarial valuations in light of IAS19-ASC715. Our experts will lead you through data cleansing and provide assumptions based on our results. We’ll follow through with a presentation to your management team and respond to auditor queries when necessary.

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KPMG Advisory, Director

KPMG in Belgium

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Actuarial Valuations – our services

The general principle is to recognize the employee benefit expense as the employee provides the service. This enhances comparison of the account for different companies. It includes all forms of consideration given by an enterprise in exchange for service rendered by employees (constructive obligation). And covers various employment benefits including post-employment benefits, long-term benefits, termination benefits and short-term benefits.

In accounting for these benefits and to determine the pension liabilities we implement the Projected Unit Credit (PUC) method which includes the following steps:

  1. Determine a reliable estimate for the ultimate cost to the entity of the benefit the employee has provided.
    • This requires estimations (actuarial assumptions) about demographic and financial variables that will affect the cost of the benefit.
  2. Discount that benefit in order to determine the present value of the defined benefit obligation.

These methods fall mainly under IFRS (IAS19) / USGAAP (ASC715) and BEGAAP.

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