CERTYNEX IFRS ACADEMY

To measure the obligation of a defined benefit plan of Rigel SA, the actuary presents four approaches for setting the actuarial assumptions (case facts). Which one is consistent with IAS 19?

Use deliberately very conservative assumptions, to guard against understating the obligation.

Base the financial assumptions on management's expectations at the date the plan was set up, to keep them stable over time.

Use assumptions that are neither imprudent nor excessively conservative, the financial assumptions reflecting market expectations at the reporting date.

Use optimistic assumptions to reduce the obligation, the difference being corrected later through remeasurements.