Actuarial valuation of End of Service Benefits is more about understanding and managing the liability and about mandated detailed disclosures in financial statements, and not just about the present value of obligation that needs to be booked in accounts.
Some relevant disclosure and additional information items which are useful in terms of managing the liability are:
sensitivity of liability to changes in key assumptions,
duration of liability,
summarized expected future cash flows,
comparison of historical assumptions with actual experience, etc.
Similarly, assumptions used have a significant impact on the ultimate liability and P&L expense. We help you to analyze assumptions so that charge to P&L (and balance sheet liability) is neither over nor under stated.
As per the disclosure requirement of IAS 19, service cost and net interest (income) / cost will be presented in P&L. Re-measurements will be presented in Other Comprehensive Income (OCI). Net interest (income) / cost will be determined by applying the discount rate to the balance sheet asset or liability.