Comparative Study of Accounting Standards for Reporting of Pension Plans

By Gurtej Singh Sadiora

The main objective of pension plan reporting in financial statements is to make sure a true picture of pension scheme is provided in the plan sponsor’s financial statements. The accounting standard boards issue accounting standards to guide and regulate reporting of pension plans. Accounting standard statements have their own objectives but the main idea is to make financial statements more transparent, consistent, easily understandable to user of accounts and represent them in a more faithful manner.

A comparative study of accounting standards issued by Financial Accounting Standards Board (FASB) in USA, UK Accounting Standard Board (ASB), International Accounting Standards and by The Council of the Institute of Chartered Accountants of India is presented in this paper.

Tips for Passing Actuarial Examinations

By Ms. Teja Ranade-Gadhoke

Actuarial examinations are considered very difficult to pass and the pass rates generally vary from 20% - 40% but not more. Also most exam takers are also working full-time, so managing the workload and simultaneously passing the exams can pose a real challenge. Having been through the same situation, I am putting down some study tips that I hope will be useful for readers. These are based on my own personal experiences and experiences of my colleagues and friends.

Journey Towards Holistic Development-From Milton Friedman to Mahatma Gandhi

By Dr. N. A. Mujumdar

INTRODUCTION

I deem it a great privilege to deliver the Seventh Professor G. S. Diwan Memorial Lecture. My grateful thanks to Shri M. G. Diwan for inviting me to give this lecture.

Professor Diwan was a pioneer in the field of actuarial profession, and appropriately known as the father of Indian actuarial profession. He was a caring and affectionate teacher cast in the mould of traditional guru - shishya parampara. There is one dimension of his personality which has impressed me most. This aspect of his personality was highlighted by Principal G. L. Abhyankar who spoke on the occasion of presentation of Gold Medal to Professor Diwan on 7th March 1980.

Funding Regulations in U.S.A – The Pension Protection Act 2006

By Teja Ranade-Gadhoke

Prompted by the recent default of large defined benefit pension plans in the U.S.A. and the looming breakdown of the Pension Benefit Guarantee Corporation (PBGC) – the guarantor of the US pension plans, in the early part of 2005, the Bush administration proposed pension funding reforms which would make the minimum funding requirements of pension plans more stringent and in turn strengthen the pension insurance system.

On July 28, 2006, these reforms were passed by a majority vote by the House of Representatives as the Pension Protection Act 2006 (hereafter referred to as PPA). It is the most comprehensive set of pension reforms since the Employee Retirement Income Security Act (ERISA) enacted in 1974. These regulations apply to the funding of single-employer and multiple-employer benefit plans and come into effect starting with the first plan year beginning after 01/01/2008. This paper is intended to give a brief description of the key provisions of the Pension Protection Act 2006 and its contrast with the old funding regulations under ERISA.

New Risk Measures For Post Global Financial Crisis 2008 Era

by Prof. Rajendra Shah


The Real Reasons for the Global Financial Crisis 2008

A common explanation that has been put forth about the real cause of the ongoing Global Financial Crisis that started in 2008 is the subprime mortgage lending. When significant number of those borrowers failed to meet their commitments, the lenders tried a recovery through selling of these mortgaged properties leading to a slump in the property market and subsequently assuring future recoveries to log losses and so on. The problem would have had a limited impact but for bold and beautiful tool of securitization (1). Use of securitization had multiplied the money available to lend many-fold and that was the reason why liberal subprime lending had become possible. The extensive use of securitization allowed the lenders to make hay because of untested optimism and lack of appropriate disclosure requirements.

Why was IndianActuary.com started?

Welcome to IndianActuary.com, India's first blog dedicated to the insurance industry and actuarial education.

In 2008 Prof. G. S. Diwan (born 1901) was inducted in the insurance hall of fame by International Insurance Society Inc, USA for his selfless service in the field of actuarial education in India. Prof. Diwan was an Actuary and taught Actuarial Science in Sydnham Colledge in Mumbai. He passed away in 1987. International Insurance Society has produced a brief video on the life of Prof. Diwan. This video can be viewed on the society's Hall of Fame website.

On this occasion, a gala dinner and an award presentation ceremony was held in Taipei, Taiwan. Prof. Diwan's son, Mr. Mukund Diwan, who is an Actuary himself and a retired Chairman of Life Insurance Corporation of India, has also made significant contributions in the betterment of actuarial education in India. He attended the award presentation ceremony. In a speech at the function, he assured the society and the audience that India will be a center of excellence for actuarial education.

This website has been launched in honor of Prof. G. S. Diwan and other great personalities who have made or are making significant contribution in the field of insurance in India. It has been conceived as an educational tool for people to improve their knowledge and awareness about:

Invest in Health - Action Plan for the City of Mumbai 2007

by Dr RD Lele

Introduction

The slogan for the World Health Day, 7th April 2007, is "Invest in Health: Build for the Future".

The WHO has defined health as a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. India has a long tradition of Health Care. Ayurwveda (literally meaning. Science of Life) clearly stated 2500 years back that the aim of medicine is three-fold: Promotion of positive Health; Prevention of disease; and Treatment of disease when it arises. One new component as part of treatment is rehabilitation.

While talking of "Health Care" most people ignore the promotive and preventive components and concentrate only on the curative components. "Health Care" has therefore become "illness Care". The so-called Health Care Industry also is concerned with illness care, pushing the importance of promotive and preventive function to a poorly neglected secondary position.