Page 234 - Group Insurance and Retirement Benefit IC 83 E- Book

Employee Benefits 183

materially from the amounts that would be determined at the balance
sheet date.

58. The detailed actuarial valuation of the present value of defined
benefit obligations may be made at intervals not exceeding three years.
However, with a view that the amounts recognised in the financial
statements do not differ materially from the amounts that would
be determined at the balance sheet date, the most recent valuation is
reviewed
at the balance sheet date and updated to reflect any material transactions
and other material changes in circumstances (including changes in
interest rates) between the date of valuation and the balance sheet date.
The fair value of any plan assets is determined at each balance sheet

59. The amount determined under paragraph 55 may be negative
(an asset). An enterprise should measure the resulting asset at the lower
of:

(a) the amount determined under paragraph55; and

(b) the present value of any economic benefits available in the
form of refunds from the plan or reductions in future
contributions to the plan. The present value of these economic
benefits should be determined using the discount rate specified
in paragraph 78.

60. An asset may arise where a defined benefit plan has been overfunded
or in certain cases where actuarial gains are recognised. An enterprise
recognises an asset in such cases because:

(a) the enterprise controls a resource, which is the ability to use the
surplus to generate future benefits;

(b) that control is a result of past events (contributions paid by the
enterprise and service rendered by the employee); and

(c) future economic benefits are available to the enterprise in the form
of a reduction in future contributions or a cash refund, either directly
to the enterprise or indirectly to another plan in deficit.