employee benefits

Topics: Pension, Economics terminology, Balance sheet Pages: 7 (2027 words) Published: February 3, 2014
IAS 19 EMPLOYEE BENEFITS
HISTORY OF IAS 19
April 1980
Exposure Draft E16 Accounting for Retirement Benefits in Financial Statements of Employers January 1983
IAS 19 Accounting for Retirement Benefits in Financial Statements of Employers 1 January 1985
Effective Date of IAS 19 (1983)
December 1992
E47 Retirement Benefit Costs
December 1993
IAS 19 Retirement Benefit Costs (revised as part of the 'Comparability of Financial Statements' project based on E32) 1 January 1995
Effective Date of IAS 19 (1993) Retirement Benefit Costs
October 1996
E54 Employee Benefits
February 1998
IAS 19 (1998) Employee Benefits
1 January 1999
Effective Date of IAS 19 (1998) Employee Benefits
October 2000
Limited Revisions to IAS 19
1 January 2001
Effective Date of IAS 19 (2000) Employee Benefits
May 2002
'Asset Ceiling' amendment to IAS 19 (2000) Employee Benefits 31 May 2002
Effective Date of IAS 19 (2002) Employee Benefits
5 December 2002
Amendments to IAS 19.144-152 are proposed as part of the IASB's project on Share-Based Payment February 2004
IAS 19.144-152 on equity compensation benefits are replaced by IFRS 2 Share-based Payment 29 April 2004
Exposure Draft of Proposed Amendments to IAS 19
16 December 2004
Amendments to IAS 19 adopted
Click for IASB Press Release on Amendments (PDF 56k).
RELATED INTERPRETATIONS
IFRIC 14: IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction Issues Relating to This Standard that IFRIC Did Not Add to Its Agenda AMENDMENTS UNDER CONSIDERATION BY IASB

Convergence of IFRS and US GAAP - IAS 19

SUMMARY OF IAS 19
Objective of IAS 19
The objective of IAS 19 (Revised 1998) is to prescribe the accounting and disclosure for employee benefits (that is, all forms of consideration given by an enterprise in exchange for service rendered by employees). The principle underlying all of the detailed requirements of the Standard is that the cost of providing employee benefits should be recognised in the period in which the benefit is earned by the employee, rather than when it is paid or payable. Scope

IAS 19 applies to (among other kinds of employee benefits): wages and salaries
compensated absences (paid vacation and sick leave)
profit sharing plans
bonuses
medical and life insurance benefits during employment
housing benefits
free or subsidised goods or services given to employees
pension benefits
post-employment medical and life insurance benefits
long-service or sabbatical leave
'jubilee' benefits
deferred compensation programmes
termination benefits.
Basic Principle of IAS 19
The cost of providing employee benefits should be recognised in the period in which the benefit is earned by the employee, rather than when it is paid or payable. Short-term Employee Benefits
For short-term employee benefits (those payable within 12 months after service is rendered, such as wages, paid vacation and sick leave, bonuses, and nonmonetary benefits such as medical care and housing), the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period should be recognised in that period. [IAS 19.10] The expected cost of short-term compensated absences should be recognised as the employees render service that increases their entitlement or, in the case of non-accumulating absences, when the absences occur. [IAS 19.11] Profit-sharing and Bonus Payments

The enterprise should recognise the expected cost of profit-sharing and bonus payments when, and only when, it has a legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the expected cost can be made. [IAS 19.17] Types of Post-employment Benefit Plans

The accounting treatment for a post-employment benefit plan will be determined according to whether the plan is a defined contribution or a defined benefit plan: Under a defined contribution plan, the enterprise pays...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Accounting for Employee Benefits (Pas 19) Essay
  • Employee Benefits (Pas 19) Essay
  • frs119 employee benefit Essay
  • The Environment of Employee Benefits Essay
  • Employee Benefits Essay
  • Essay on Employee Benefits
  • Importance and Roles of Employee Compensation Research Paper
  • Essay about Employee Benefit

Become a StudyMode Member

Sign Up - It's Free