MILES / Financial Reporting Valuation
Long Service Payment (LSP) Assessment
Understand employee benefit obligations and the assumptions behind your assessment.
Discuss Long Service Payment (LSP) Assessment
Long service payment assessments involve employee data, benefit arrangements and assumptions about future events. A clear record of the data and judgements helps finance teams understand the estimated obligation and explain changes over time.
MILES supports long service payment liability assessments for financial reporting, using employee information and relevant assumptions on the accounting basis established by management and its advisers.
When should you speak with us?
- You need an assessment of long service payment obligations at the reporting date.
- Your workforce, pay levels or benefit arrangements have changed.
- Your finance team needs explanations of the assumptions, results or movements for audit discussions.
How we help
Confirm the assessment basis
Understand the employee population, benefit arrangements, reporting date and relevant accounting conclusions, including applicable offset arrangements.
Review employee data
Check the completeness and consistency of employment dates, remuneration and relevant benefit or contribution records, and clarify data gaps.
Assess relevant assumptions
Analyse assumptions such as salary growth, turnover, retirement and discount rates in light of the workforce and assessment basis.
Explain the obligation and movements
Provide supporting calculations and explanations of material drivers and, where agreed, sensitivities or period-to-period changes.
What information is typically required?
- Employee records with start dates and relevant demographic information
- Salary, service and remuneration records
- Retirement, turnover and benefit policies
- Relevant MPF or retirement scheme records and previous assessments
The information request will be tailored to the purpose and scope. If your records are incomplete, we can first discuss preparation priorities.
Frequently asked questions
Is the assessment just a calculation using current salaries?
Current pay is part of the information. Depending on the assessment basis, future service, salary changes, employee turnover and discounting can also affect the estimate.
What if the employee records are incomplete?
We can first identify missing information and agree preparation priorities. Any necessary assumptions and data limitations should be documented and discussed with management.
Accounting standard: IAS 19
Plan your long service payment (lsp) assessment work
Share your objectives, the assets or businesses involved, available information and expected timetable. We will discuss the scope, preparation priorities and next steps with you.
Enquire About Long Service Payment (LSP) Assessment