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As-15
Accountancy
In defined plan why do we need to discount the amount to present value instead at the end the amt would be the same as the present obligation for eg if the amt to be paid is 100 at the end of 5yrs but why do we need to discount it today instead of just keeping 100rs aside, and also this is an actuarial assumption that employee will stay till 5yr what if employee left his job at 4yr than there would be problem cause we have discounted the amount, kindly please give clarity about this
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