As a leader of an organization in the Philippines, you are likely aware of the importance of accurate financial reporting and compliance with accounting standards. One area that requires special attention is the accounting for employee benefits, which is governed by Philippine Accounting Standard (PAS) 19, “Employee Benefits.”
In the Philippines, the Securities and Exchange Commission (SEC) requires publicly listed companies and other large entities to be compliant with PAS 19 and other relevant accounting standards. This means that these companies must perform actuarial valuations of their employee benefit plans in order to determine the expected cost of those plans.
An actuarial valuation involves estimating the cost of an employee benefit plan based on assumptions about future events, such as future salary increases, employee turnover, and investment returns on plan assets. There are several types of employee benefit plans for which an actuarial valuation may be required under PAS 19, including defined benefit pension plans, post-employment medical plans, and other long-term benefit plans. The specific requirements for actuarial valuations will depend on the type of plan being valued and the nature of the benefits being provided.
So, why is it necessary for a company to hire an actuarial services provider for PAS 19 valuations? Here are some key reasons:
- Expertise: Actuaries are highly trained professionals with expertise in the field of actuarial science, including the principles and methods used in actuarial valuations. They are qualified to perform PAS 19 valuations and can provide valuable insights on the expected cost of employee benefit plans.
- Accuracy: Actuaries use specialized software and techniques to perform actuarial valuations, which helps to ensure the accuracy of the results. This is especially important because the actuarial valuation results can have a significant impact on the financial statements and the company’s overall financial position.
- Compliance: Hiring an actuarial services provider can help a company ensure compliance with PAS 19 and other relevant accounting standards. Actuaries are familiar with the reportorial requirements.
If you are in need of actuarial services in accordance with PAS 19 for your company’s employee retirement plans, don’t hesitate to contact Zalamea for a proposal. Our team of qualified actuaries can provide expert guidance and accurate results to help you meet your PAS 19 compliance requirements. Simply email us at firstname.lastname@example.org to get started.