Sensitivities and reconciliations

Learning objectives

• Identify the significant actuarial assumptions that require a sensitivity analysis.L3
• Explain the content of a sensitivity analysis.L3

Normative references

• IAS 19 §145The entity discloses a sensitivity analysis for each significant actuarial assumption, showing how the obligation would have been affected by changes in the assumption that were reasonably possible at the reporting date, together with the methods and assumptions used in preparing the analysis, their limitations and changes from the previous period.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Tavrel SA has three significant actuarial assumptions for its defined benefit plan: the discount rate, salary growth and mortality. In its notes, it presents a sensitivity analysis for the discount rate alone (case facts). What should be concluded about this disclosure?L3