Define: Actuarial Method

UK Accounting Glossary

Definition: Actuarial Method

Quick Summary

Actuarial Method is the process of distributing payments made on a debt between the amount provided as fund and also to the finance charge in accordance to which a payment is used first to the appended finance charge.

What is the dictionary definition of Actuarial Method?

Dictionary Definition

This is a method used in lease accounting to apportion rentals on the basis of compound interest; It’s also used in pensions accounting in order to determine the charge to the profit and loss account.

Full Definition

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