Discount Rate (ASSB119)

Through the Group of 100, the Actuaries Institute recently assisted in funding and providing support for research conducted by Milliman to develop a standardised set of discount rates to be made publicly available for the purpose of discounting employee benefit liabilities under Australian Accounting Standard 119 (AASB119)

The research paper assesses whether the Australian corporate bond market meets the requirements as outlined in AASB119, and determines a methodology to derive a full discount rate curve allowing for possible limitations in available market data.

A G100 discount rate curve will be regularly produced by Milliman and will be available as a transparent central reference point for the industry to use on an ongoing basis with the first curve available in June 2015.

Please visit the Group of 100 website here http://group100.com.au/g100-discount-rate/ to access the research paper, reports and regularly produced discount rate curve.