Actuary
Accounting glossary · Understand, connect, apply
An actuary uses mathematical, statistical and financial methods to analyse uncertain future events and their financial effects.
Example
An actuary estimates pension benefit obligations using assumptions about mortality, employee turnover and discount rates.
Remember the difference
Actuaries work in pensions, insurance and other risk fields. Their estimates depend on assumptions and are not guaranteed predictions.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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