Actuarial Valuation
The end-of-service obligation is not years of service times final salary. The standard treats it as a defined benefit: a future obligation discounted to present value on assumptions about the discount rate, salary growth, and turnover. The gap between the two calculations is not cosmetic — it can move the number on your balance sheet materially in either direction, and the direction cannot be guessed from company size. It has to be measured. We run the valuation in-house, so your file never passes to a third party or waits on anyone else's schedule.
- Regulator
- IFRS as endorsed in the Kingdom
- Typical duration
- One to three weeks from a complete employee census. An incomplete census is what stretches the timeline, not the calculation. Booking the valuation ahead of close season saves everyone time and leaves room to handle any surprise before the statements are issued.
- We don't publish price lists
- A quote built on your case, with a written scope and a validity date
Hello. I can price an IAS 19 end-of-service benefit valuation right now — six questions.
Get your quote now and start right here
6 questions are enough for a number built on your case — not a range, and not a promise to call. And if your case needs a closer look, we say so plainly rather than guess.
Once you accept, your account opens on your mobile number and we continue from here: the statutory step, then documents, then the work begins.
Is this service for you?
- Companies reporting under IFRS with a material end-of-service benefit obligation.
- Listed companies and entities under a regulator that requires the valuation annually.
- Insurance companies and funds needing a valuation of long-term obligations.
- Companies whose external auditor has raised a finding on how the obligation is measured — the most common trigger in close season.
- Companies heading into a merger, acquisition or exit, where the obligation is measured at a set date and negotiated in the deal.
- Entities adopting IFRS for the first time and needing a measurement at the transition date.
When you need it
- At fiscal year-end, before the financial statements are issued — ideally scheduled ahead of close season rather than inside it.
- On a material change in headcount, salary policy, or the benefits scheme.
- On a restructuring, mass separation, or branch closure, where the obligation changes materially.
- On first-time adoption of IFRS.
- In a merger or acquisition requiring measurement at a specific date.
Deliverables
- The actuarial valuation report with the obligation at the measurement date and an analysis of its movement over the year.
- Disclosures ready to place into the notes as written, not raw material for you to redraft.
- A statement of the assumptions used and the rationale for each — the first thing your auditor will ask about.
- The sensitivity analysis the standard requires for changes in the discount rate and salary growth.
- The change from last year broken out between service cost, interest cost, assumption changes and actuarial differences.
- Direct responses to your external auditor's queries, without you having to sit in the middle.
The checklist
This is the same checklist we send when you accept the quote — you can start assembling it now.
- Employee census: joining date, basic salary, date of birth, contract type, employment status.
- Your benefits policy and internal labour regulations.
- Turnover data for past years: numbers of leavers and reasons for leaving.
- Your annual increase policy and its actual history, where available.
- The previous actuarial valuation, if any, and the end-of-service note from last year's statements.
- Any changes to the benefits scheme during the year, or announced plans to change it.
How the engagement runs
- 01
Preparing and testing the employee census
We test the census for completeness and resolve gaps and inconsistencies before measuring. The valuation is only as good as the census, and what delays actuarial work is rarely the calculation — it is waiting on incomplete data.
- 02
Setting and documenting the assumptions
We set the discount rate, salary growth and turnover assumptions with documented rationale suited to your sector and workforce, not standard figures copied across.
- 03
Measurement and movement analysis
We compute the obligation, its movement and the sensitivity analysis, and explain the change from last year in components — so management knows why the number is what it is, not just what it is.
- 04
Internal review of the report
The engagement lead reviews assumptions and results before delivery, and we sanity-check the figure against payroll size and service profile.
- 05
Delivery and auditor support
We deliver the report and disclosures and answer your external auditor's questions directly until the item is closed.
Common questions
Will our external auditor accept the report?
The report is written to be read by an auditor: clear methodology, each assumption justified on its own, a sensitivity analysis, and the movement broken out. And we answer their questions directly rather than through you — which is where most of the time is saved in close season.
How many employees justify an actuarial valuation?
There is no headcount threshold; what matters is materiality to your statements as a whole. Fifty long-serving employees can produce a more material obligation than two hundred recent joiners. The practical rule: if the end-of-service provision is a visible line on your balance sheet, it deserves measurement.
Why is the figure so different from our own calculation?
Three effects interact: discounting to present value lowers it, expected salary growth raises it, and turnover lowers it. In a business with a stable long-serving team, salary growth dominates and the obligation comes out higher; with high turnover, the leaving effect dominates and it comes out lower. That is why the direction cannot be predicted without measuring.
Does the service include the disclosures?
Yes — we hand over the disclosure text ready to place in the notes, in the language of the statements, rather than leaving you or your auditor to draft it.
Do we need a valuation every year?
The standard requires the obligation to be measured at each reporting date. In practice, a year with no material change can be an update rather than a full study — cheaper and faster. But where your workforce, salary policy or the discount rate has moved materially, a full study is the right answer.
Do you provide valuations beyond end-of-service benefits?
Yes — other long-term employee benefits, obligation measurement in merger and acquisition transactions, and valuations required by regulators in certain sectors. Tell us the purpose and who will read the report, and we will scope it accordingly.
Related reading
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