The Liability Adequacy Test is an important tool in financial accounting and insurance to ensure that the reserves recorded in the accounts are sufficient to meet future liabilities. A strong liability adequacy test considers current actuarial assumptions together with anticipated cash flows to determine whether the present level of liabilities is adequate for the organization's anticipated claims. When these reserves are insufficient, any accountants would follow accounting rules to immediately record it in the Profit and Loss as an expense, to assure financial stability. What does your firm or your client's method of actuarial testing for IFRS compliance look like? Begin the dialogue and add your risk management expertise!