Acturial valuation of leave encashment
This query is : Resolved
21 November 2014
Good Afternoon to all,
My Query is :
AS 15 (revised, 2005) is applicable on the following :
1. Listed companies on any stock exchange in India
2. Banks/FIIs/Insurance companies
3. Companies having turnover of more than 50 crores
4. Companies having borrowings or deposits of more than 10 crores
5. Companies employing more than 50 employees
6. Holding or subsidiary company of any of the above
Above-mentioned companies must get actuarial valuation done externally as per AS 15 by a certified actuary at least once a year.
Is there is any other condition for Acturial Valuation of Leave Encashment(Short term or long term).
Moreover, is there any condition regarding short-term or long-term leave facility.Eg: If a company is giving 15 days earned leave in a calendar year cumulative upto 28 days, is acturial valuation required to be done, as 28 days is short term leave.
Kindly help.
Thanks & Regards,
Akshay Choraria
My Query is :
AS 15 (revised, 2005) is applicable on the following :
1. Listed companies on any stock exchange in India
2. Banks/FIIs/Insurance companies
3. Companies having turnover of more than 50 crores
4. Companies having borrowings or deposits of more than 10 crores
5. Companies employing more than 50 employees
6. Holding or subsidiary company of any of the above
Above-mentioned companies must get actuarial valuation done externally as per AS 15 by a certified actuary at least once a year.
Is there is any other condition for Acturial Valuation of Leave Encashment(Short term or long term).
Moreover, is there any condition regarding short-term or long-term leave facility.Eg: If a company is giving 15 days earned leave in a calendar year cumulative upto 28 days, is acturial valuation required to be done, as 28 days is short term leave.
Kindly help.
Thanks & Regards,
Akshay Choraria
21 November 2014
As accumulation leave is there it is a long term benefit actuarial valuation is required.
21 November 2014
I think AS15 aims at short term and long term in terms of period in which the liability is likely to occur.
In case of leave, if the same is allowed to be carried forward to beyond 1 year, then it should be regarded as long term.
Your views please.
In case of leave, if the same is allowed to be carried forward to beyond 1 year, then it should be regarded as long term.
Your views please.
21 November 2014
Dear Sir,
Thanks for the reply.
I had consulted my senior regarding leave days that can be accumulated. He said Company adopts the policy of accumulating leave less than 30 days in order to avoid actuarial valuation of leave.If leave is more than 30 days then actuarial valuation is required to be done. I am unable to find any link related to this. Kindly help
Thanks for the reply.
I had consulted my senior regarding leave days that can be accumulated. He said Company adopts the policy of accumulating leave less than 30 days in order to avoid actuarial valuation of leave.If leave is more than 30 days then actuarial valuation is required to be done. I am unable to find any link related to this. Kindly help
21 November 2014
I think Akshay, let us first make consensus ad idem. See the question is not maximumno of days leave that can be accumulated......the question is for how many years this accumulated leave can be carried over....it the period of carry over goes beyond 1 year, then it long term.
Your views please.
Your views please.
21 November 2014
In this case,the Leave can be carried forward for more than 1 year but accumulated upto 28 days. Thereafter, it would get lapsed. Is there any relation between the no. of days that the leave can be accumulated and acturial valuation of leave encashment ?
21 November 2014
I agree with the views of Amol S. Joglekar if the accumulation is beyond one year it is long term for which actuarial valuation is required.
21 November 2014
Of course yes. Although the word ACTUARIAL is close by to ACTUAL, in reality it works on ESTIMATE, using many statistical decision theory and statistical sampling methods.
And therefore, it has become a highly specialised job. Actuaries are the MAXIMUM paid people,now a days.
And therefore, it has become a highly specialised job. Actuaries are the MAXIMUM paid people,now a days.
21 November 2014
Does the accumulation beyond one year means more than 30 days or what ? Accumulation of leave upto 28 days can be counted as long term benefits ?
21 November 2014
Akshay please, either myself is too small to understand you or You are too big to explain it to me....ok one more attempt.
year leave leave balance
earned availed
2009 15 7 8
2010 15 10 13 (8+5)
2011 15 8 20
2012 15 5 28
2013 15 12 28
Lapsing of leave assumes FIFO basis.
Now tell me your query
year leave leave balance
earned availed
2009 15 7 8
2010 15 10 13 (8+5)
2011 15 8 20
2012 15 5 28
2013 15 12 28
Lapsing of leave assumes FIFO basis.
Now tell me your query
25 November 2014
My query was altogether different Sir which is now resolved. Thanks so much !!
25 November 2014
Ok. You are welcome.
.
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