Alan Hardie

More documents

Recommendations

Info

The assumptions - discount rate • How to determine the discount rate? – Government bond yield + risk premium – Yield on a suitable AA corporate bond index – Yield on an Individual AA corporate bond – Other methods • Views of the Company Directors? • Compatibility with other accounting standards – IAS19 and FAS87 PricewaterhouseCoopers
The assumptions - inflation • FRS 17 states that “In jurisdictions where there is a liquid market in long-dated inflation-linked bonds, the yields on such bonds relative to those on fixed interest bonds of similar credit standing will give an indication of the expected rate of general inflation.” • No liquid market in index-linked bonds in Ireland at the moment • Such a market does exist in the Eurozone • Need to use some judgment – could consider – ECB expectations of long term inflation – Past and present levels of inflation in Ireland – Economic forecasts – Other indicators of inflation PricewaterhouseCoopers
Page 1 and 2: FRS17 Actuarial Assumptions Alan Ha
Page 3: The assumptions - discount rate •
Page 7 and 8: The assumptions - expected return o
Page 9 and 10: FRS 17 Survey of Assumptions Price
Page 11 and 12: FRS 17 Survey of Assumptions Salary
Page 13 and 14: FRS 17 Survey of Assumptions Discou
Page 15 and 16: FRS 17 Survey of Assumptions Bond R
Page 17 and 18: FRS 17 Survey of Assumptions The
Page 19: PwC

Alan Hardie

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?