Working Papers, Hanken School of Economics
No 517:
Projections of Pension Fund Solvency under Alternative Accounting Regimes
Andriy Andreev ()
and Hans-Kristian Sjöholm ()
Abstract: This paper examines the impact of three alternative
accounting regimes on perceived pension fund solvency. Deterministic
accounting assumes actuarially smoothed valuation of assets and
liabilities. National accounting is based on market valuation of assets and
on actuarial valuation of liabilities. International accounting books
assets and liabilities to market values. Using closed-form methods based on
the funding ratio return, we exemplify the dramatic effect that the choice
of accounting approach has on long-horizon solvency projections.
Keywords: pension fund; solvency; long-horizon return; asset liability management; accounting standards; (follow links to similar papers)
14 pages, September 13, 2006
Download Statistics
Questions (including download problems) about the papers in this series should be directed to Staffan Dellringer ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Programing by
Design by Joakim Ekebom
