The AA bond effect

Taha Lokhandwala looks at how the availability of high quality corporate bonds affects schemes’ funding positions

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The murky world of IAS19 is often difficult for non-accounting bodies to understand, with no aspect more difficult than the determination of the discount rate.

The discount rate is used to calculate future liabilities and should reflect the time value of money, the currency and the estimated timing of benefit payments. The guidance to calculate the tim...

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