Question

an enterprise should estimate provision in respect of gratuity and other benefit schemes for an interim period on _____ basis by using the actuarially determined rates at the end of the financial year​ (A)annual (B)year to date (C)quarterly (D)none of A,B and C ​

Answer 1

Explanation:

QUARTERLY .............

Answer 2

The provision is to be estimated on year to date basis.

• It is one of the retirement benifits received by an employee.
• Provisions for gratuity and other defined benefit schemes are calculated on a year-to-date basis.
• It is done using the actuarially determined rates at the end of the prior financial year.
• They are then adjusted for significant market fluctuations and subsequently also for significant curtailments, settlements, or other one-time events.