Sentence examples for discount liabilities from inspiring English sources

Final-salary pensions are a debt-like liability.When private-sector companies account for their pension schemes, therefore, they discount liabilities with a corporate-bond yield.

That is 68% more than reported by the states, and produces the authors' figure of $3.4 trillion for the gap between liabilities and assets.In their defence, the states say that they are following the Governmental Accounting Standards Board (GASB), which recommends discounting liabilities by assumed returns.

The SBS report uses a fair-market valuation that discounts liabilities at a risk-free rate, as opposed to the optimistic investment returns used by most plans.

American public-sector schemes discount their liabilities by the expected return on their assets.

In the private sector, companies discount their liabilities in their accounts at a median rate of 4.7%.

That makes it seem logical to use a risk-free rate, like the Treasury bond yield, to discount the liabilities.

American public-sector pension funds still discount their liabilities by an assumed rate of return, often 8% a year.

They can discount their liabilities on the basis of the assumed rate of return (8% is standard) on the assets in their pension funds.

That left them horribly exposed to the two bear markets of the current millennium.Meanwhile, accounting standards have forced company pension schemes to discount their liabilities using a corporate-bond yield.

In the private sector, companies are required to discount their liabilities by the yield on AA corporate bonds; the rate reflects the cost of their borrowing and allows for the possibility that the company defaults on its promise.Although companies may default, it seems odd for a government to make pension promises and then use accounting methods that assume it may fail to keep them.

These critics advocate discounting pension liabilities based on a low-risk rate of return, akin to one for a very safe bond.