Accounting valuations in accordance with the Spanish National Chart of Accounts

Quibus conducts an in-depth study and dedicates as much time as is necessary to understanding the factors which create value and the dynamics which characterise a company’s business or a person’s situation, in order to deal successfully with the complex requirements that a valuation involves.

With reference the recognition and measurement of the present value of the obligations concerning post-employment benefits on the reporting date, net interest, current service costs, past service costs, expected return on assets and actuarial gains and losses due to defined benefits in accordance with Recognition and Measurement Rule No. 16, approved under the National Chart of Accounts, approved by Royal Decree 1514/2007, of 16 November.

In particular, standard 16 Liabilities for long-term employee benefits specifically states:
...In order to calculate the current value of payments relating to defined benefit schemes, use will be made of actuarial calculation methods and financial and actuarial assumptions that are unbiased and mutually compatible...

ISAP 3 - International Standard of Actuarial Practice 3

Actuarial Practice in relation to IAS 19 Employee benefits
Standard issued by the International Actuarial Association (IAA)

This International Standard of Actuarial Practice (ISAP) provides guidelines for actuaries when they perform actuarial services relating to International Accounting Standard 19 (IAS 19) Employee benefits.

The reporting entity is responsible for all the information reported in its IFRS financial statements, including the information presented in accordance with IAS 19. This means that the reporting entity is responsible for the classification of the employee benefit plans, the choice of actuarial assumptions and methods used to measure the employee benefit obligations, and the disclosure of employee benefit plans.

IAS 19 encourages, but does not require, a reporting entity to hire a qualified actuary to measure all post-employment benefit plans.

In practice, an actuary may provide advice about a number of questions arising from the application of IAS 19, including measurement in the short-term of post-employment benefits, termination benefits or other long-term employee benefits and disclosures in the IFRS financial statements

ISAP 3 Standard added values

In general

  • Level of importance of the requirements and the advice provided by the Actuary to the Reporting Entity.
  • Focus on practical effects (Materiality).
  • Enhancement of IAS 19 using mathematics and actuarial statistics.
  • Detailed breakdown of the basis for conclusions.
  • Improvement of the quality of the information presented in the IFRS Financial Statements.

Contributions to a defined contribution plan

Relationship of trust with the Reporting entity.
Request for clarification made to the Head of the Reporting Entity.
Lack of data and resolution of the situation.

Further added values

Increase in the level of trust that the reporting entities and their auditors have in the actuaries’ contribution.
Increase in society’s trust in the service the actuary provides
Demonstration of the IAA’s commitment to providing support to the International Accounting Standards Board (IASB)
Enabling of convergence in the standards for actuarial practice in relation to accounting regulations in post-employment benefit plans for employees

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