ACTUARIAL CALCULATION PROVISION<\/h1>\n<\/div>CONTACT-US FOR DETAILS<\/span><\/a><\/div><\/div><\/div><\/div><\/div><\/div>![](\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" "\\"icon-servicii-consultanta-fiscala-si-audit-preturi-de-transfer\\"")
<\/span><\/div><\/div><\/div><\/div>Year-end brings specific challenges regarding financial reporting. For companies that have collective labor agreements, one of the financial reporting needs is related to the provision for pensions\/employee benefits.<\/strong><\/p>\nTo whom does this apply?<\/strong><\/p>\nWhether applying the reporting requirements according to OMFP 1802 from December 29, 2014, or those according to Order No. 2844\/2016 from December 12, 2016, respectively IAS 19, an entity will set up provisions for pensions or other employee benefits when it is required by the articles of association or the employment contract to pay such amounts (e.g., pension payments after employees have left the entity).<\/p>\n
What does this provision refer to?<\/strong><\/p>\nEmployee benefits include:<\/p>\n
\n- Short-term employee benefits, expected to be fully paid within 12 months of the end of the annual reporting period in which the employees rendered the related services (e.g., unused vacation days, profit sharing, bonuses, non-monetary benefits such as car, phone, company housing, etc.)<\/li>\n
- Post-employment benefits, such as: retirement benefits and other post-employment benefits (e.g., post-employment life insurance and post-employment medical care)<\/li>\n
- Other long-term employee benefits, such as: long-term paid absences like long-service leave or sabbatical leave; jubilee or other long-service benefits and long-term disability benefits<\/li>\n
- Termination benefits.<\/li>\n<\/ul>\n
How can we help?<\/strong><\/p>\nThe accounting of such provisions by an entity involves the following steps:<\/p>\n
\n- Identifying all eligible benefits and obligations according to applicable regulations, included in the collective labor agreement (CCM)<\/li>\n
- Estimating, using an actuarial technique known as the projected unit credit method, the ultimate cost to the entity of the benefit that employees have earned in return for their service in the current and prior periods.<\/li>\n
- Discounting that benefit to determine the present value of the defined benefit obligation and the current service cost.<\/li>\n<\/ul>\n
OMFP and IAS 19 encourage entities to involve a specialist in the evaluation of post-employment benefit obligations.<\/p>\n
We can support you in the process of identifying and quantifying these provisions through actuarial calculation, ensuring our availability for clarification discussions with the entity’s independent auditor if needed.<\/p>\n
For more details and a personalized offer, we are pleased to be at your disposal both through the Darian partners you keep in constant contact with, as well as through the direct responsible person:<\/p>\n
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<\/span><\/div>Year-end brings specific challenges regarding financial reporting. For companies that have collective labor agreements, one of the financial reporting needs is related to the provision for pensions\/employee benefits.<\/strong><\/p>\n To whom does this apply?<\/strong><\/p>\n Whether applying the reporting requirements according to OMFP 1802 from December 29, 2014, or those according to Order No. 2844\/2016 from December 12, 2016, respectively IAS 19, an entity will set up provisions for pensions or other employee benefits when it is required by the articles of association or the employment contract to pay such amounts (e.g., pension payments after employees have left the entity).<\/p>\n What does this provision refer to?<\/strong><\/p>\n Employee benefits include:<\/p>\n How can we help?<\/strong><\/p>\n The accounting of such provisions by an entity involves the following steps:<\/p>\n OMFP and IAS 19 encourage entities to involve a specialist in the evaluation of post-employment benefit obligations.<\/p>\n We can support you in the process of identifying and quantifying these provisions through actuarial calculation, ensuring our availability for clarification discussions with the entity’s independent auditor if needed.<\/p>\n For more details and a personalized offer, we are pleased to be at your disposal both through the Darian partners you keep in constant contact with, as well as through the direct responsible person:<\/p>\n\n
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