Understanding Actuarial Valuation Reports and PF Account Rules for New Companies: Need Clarification

Hi All,

Can someone please advise me on what this is all about - Actuarial valuation report on Gratuity and Leave. Secondly, is there any number constraint to open a PF account for a new company? Earlier, it was said that the number of employees should be above 20. Now, is there any change in the policy?

Thank you all in advance.

- Shirley

Actuarial valuation is required to put a value on the liability and expense arising due to gratuity and leave encashment benefits, which are generally given to employees by the employers. Liability in respect of gratuity and leave encashment benefits has to be disclosed in the balance sheet, and the expense in respect of the same needs to be recorded in the P&L statement.

Actuarial valuations are required to be performed as per the requirements of Accounting Standard 15 (revised, 2005).