For the determination and recognition of the current service cost and the defined pensior liability, one particular

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For the determination and recognition of the current service cost and the defined pensior liability, one particular actuarial cost method has been chosen, namely the projected unit credit method. This method takes into account expected future salary increases. Comment on this decision. What is your opinion on taking into account these expected salary increases? What I arguments could be used in favour of including future salary increases? Are there any arguments against the inclusion of future salary increases?
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International Financial Reporting and Analysis

ISBN: 978-1408075012

5th edition

Authors: David Alexander, Anne Britton, Ann Jorissen

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