IAS 19 Actuarial Valuation of End of Service Benefits, Middle East

What is IAS 19 Valuation?

IAS 19 is the international accounting standard governing the recognition, measurement, and disclosure of employee benefits. An IAS 19 actuarial valuation quantifies your company’s employee benefit liabilities in a manner consistent with the International Financial Reporting Standards (IFRS), ensuring your financial statements remain transparent and audit-ready.

Which Employee Benefits?

In the Middle East, it is particularly relevant for End of Service Benefits (EOSB) - also known as End of Service Gratuity or Termination Indemnity. These benefits are a statutory obligation under local labor regulations and represent a defined lump sum payable to employees upon their departure from service. Additionally, other long-term employee benefits may include jubilee benefits and post-retirement medical plans, provided they are payable 12 months or more after the end of the employment period.

Why It Matters

With greater scrutiny from auditors, regulators, and stakeholders, accurate valuation of employee benefits is essential. Our service supports:

• Compliance with IFRS and local reporting requirements
• Accurate financial provisioning, minimizing the risk of under- or overstatement
• Audit readiness, with detailed actuarial reports aligned to international standards
• Strategic alignment between HR and finance, providing insights into workforce liabilities

What We Offer

Mercer’s actuarial team delivers a seamless and efficient process for tailored valuations. Our IAS 19 Actuarial Valuation of EOSB includes:

• Comprehensive actuarial valuation of your EOSB liabilities in line with IAS 19
• Detailed reports featuring financial disclosures (including P&L and OCI), assumptions, and sensitivities
• Alignment with local labor laws across the GCC and MENA
• Support for both annual and interim reporting cycles
• Consolidation of results to meet national, multi-national and global requirements

Who Is It For?

This solution is designed for:

• CFOs, Finance Directors and Managers preparing financial statements under IFRS
• HR and Rewards Professionals seeking insight into long-term benefit obligations
• Audit and Compliance Teams ensuring alignment with accounting standards
• Organizations of all sizes across UAE, Saudi Arabia, Qatar, Kuwait, Oman, Bahrain, Egypt and beyond

Why Mercer?

With decades of global experience and deep regional knowledge, Mercer’s actuarial teams bring:

• Local expertise in Middle Eastern labor law and EOSB schemes
• Global best practices and alignment with multinational reporting standards
• Technology-enabled delivery, ensuring efficiency and accuracy
• Trusted partnerships with hundreds of companies across the region (global, multi-national and local)

Deliverables

Upon completion, you will receive:

• An actuarial valuation report compliant with IAS 19
• Detailed disclosures for financial statements
• Sensitivity analysis and assumptions documentation
• Executive summary and support for audit discussions

Add-on Services

We also offer:

• Interim valuations for half-year or quarterly reporting
• Impact analysis of workforce changes or plan modifications
• Transition support during M&A or restructuring events
• Scenario modeling for workforce planning and strategic HR insights

Get Started Today

Ensure your End of Service Benefits liabilities are fully compliant, accurately valued, and strategically managed.

Delivery Time: Typically within 5–10 business days

Languages Supported: English, Arabic

Availability: UAE, KSA, Qatar, Oman, Kuwait, Bahrain, Egypt

Need help or more information? Contact our Mercer experts today.