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EOSB actuarial valuation · IAS 19
End-of-service benefit valuations your auditors will accept
We value end-of-service benefit (EOSB) obligations under IAS 19, IFRS for SMEs (Section 28) and IPSAS 39 for companies, banks and public institutions across the Gulf and the wider region. You receive a clear actuarial report and the disclosure figures for your financial statements, prepared by actuaries who know the local labour laws and work in Arabic and English.
Who needs it
Any employer that owes end-of-service benefits and reports under IFRS
- Companies with employees in the GulfLabour laws across the region give employees a lump sum at the end of service. Under IAS 19 this is a defined benefit obligation that must be measured actuarially.
- Finance teams and auditorsExternal auditors usually expect an independent actuarial valuation to support the provision in the financial statements.
- Institutions with their own schemesOrganizations running an internal end-of-service or savings fund, including schemes with employee contributions, that need to know whether the fund is adequate.
What you receive
A report you can use, not only a number
- Actuarial valuation report, in Arabic or EnglishThe obligation at the valuation date, with the methodology and every assumption explained.
- Disclosures for your financial statementsUnder IAS 19, IFRS for SMEs Section 28 or IPSAS 39: results, income statement and OCI items, and the year-on-year reconciliation.
- Cost projection for this year and nextThe expected benefit cost for the current and following year, so you can budget for it.
- Sensitivity analysisHow the obligation moves with the discount rate, salary growth and staff turnover.
- Auditor supportWe answer your auditors' questions on the methodology and assumptions directly.
- Funding review, where relevantFor funded schemes, a comparison of fund assets with the obligation and options for contributions.
How it works
Five steps from data to final report
- Data collectionWe send an Excel template. You return it with your previous report and financial statements.
- Data reviewWe check the data for completeness and quality and agree any clarifications with you.
- ValuationWe set the assumptions with you and calculate the obligation.
- Draft reportYou review the draft results, methodology and assumptions.
- Final reportWe issue the final report and support your audit.
Questions
Common questions
Is an actuarial valuation required for end-of-service benefits?
IAS 19 treats end-of-service benefits as a defined benefit obligation, measured with the projected unit credit method. In practice, auditors of companies reporting under IFRS usually expect a valuation prepared by a qualified actuary.
Which accounting standards do you cover?
IAS 19 for companies reporting under full IFRS, Section 28 of IFRS for SMEs for smaller entities, and IPSAS 39 for public sector institutions.
We have several companies in our group. Is that one valuation?
Each entity needs its own calculation and report, so let us know how many entities are involved and we will include them all in one proposal.
How often should the valuation be done?
At least once a year, at your financial year end. Some companies also update it at half year or after a large change in their workforce.
What if our employee data is incomplete?
That is common. We review the data first and tell you exactly what is missing and how it affects the result before we finalize the valuation.
Can you value a scheme where employees contribute?
Yes. We value schemes that combine employee contributions with employer funding, and we can assess whether the fund is sufficient to meet future payments.
Do you work with companies outside Jordan and Saudi Arabia?
Yes. We have valued end-of-service and pension obligations for clients in Saudi Arabia, the UAE, Kuwait, Qatar, Jordan, Palestine and Egypt.