There Are Two Types of Risk Associated with Post-Employment Benefits,investment

question 4

Essay

There are two types of risk associated with post-employment benefits,investment risk and actuarial risk.Explain these terms and describe the situations when these risks are borne by the employee and when they are borne by the employer (in accordance with AASB 119).

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Definitions:

Preponderance of the Evidence

A standard of proof in civil cases, where the party with the more convincing evidence wins, requiring over 50% of the evidence to be in favor.

Negligence Action

A legal claim made against someone who is alleged to have failed to act with the care that a reasonably prudent person would have in a similar situation, resulting in harm.

Res Ipsa Loquitur

A legal doctrine which allows plaintiffs to prove negligence on the basis of the very nature of an accident or injury occurring, suggesting the defendant's responsibility even without direct evidence of negligence.

Overpressurized

A state where pressure in a system exceeds its designed limits, potentially leading to failure or hazard.