Authors
Dr., College of administration and economic, University of Samara, Iraq
[email protected]
Abstract
This study explores the application of actuarial accounting to enhance financial sustainability of the companies that are registered on the stock exchange Nasdaq during the years 2020 to 2024 by measuring long-term liabilities regarding employee benefits according to the standard IAS 19. The goal of this study is to analyze the significance of actuarial accounting in estimating the liability in future years. Moreover, it offers reliable accounting information that assists the management as well as investors to make sound financial decisions. Above all, it contributes towards the borrowing capacity of companies.
The research utilized a descriptive-analytical approach, this descriptive-analytical approach allows to describe and analyze the causal relationship of accounting with its financia. The data utilized in this study includes financial data as well as the actuarial data on respondent companies. The use of panel data over five years helped in identifying trends and variables over time. To estimate the impact of actuarial variables (employee life expectancy, salary increase rate, and employee turnover rate) on long-term liabilities, we analyzed the data using quantitative statistical methods (descriptive analysis, Pearson correlation coefficient, and regression analysis).
The results of the study indicated a strong, significant, and positive correlation between all actuarial variables and long-term liabilities. The improvement of financial disclosure took place through the use of accurate actuarial estimates that support future planning and management of financial risks as well as financial sustainability of firms. Additionally, life expectancy and salary increase rate of employees have the most significant impact on liabilities whereby employee turnover also has significant impact but less compared to the former two.
Given this finding, it is recommended to strengthen the application of actuarial standards on accounting measurement and disclosure, as well as implement sustainable policies for the management of long-term liabilities for financial sustainability and transparency and credibility on the financial statements.