Gripping Ifrs Employee Benefitschapter 16 487 Employee Benefits Apply to Any Type of Settlement – with the Exception of Share-Basedpayments. These Payments Were Previously Included Within This Standard (Ias 19: Essay

831 WordsAug 15, 20154 Pages
Gripping IFRS Employee benefitsChapter 16 487 Employee benefits apply to any type of settlement – with the exception of share-basedpayments. These payments were previously included within this standard (IAS 19: Employeebenefits ) but are now covered by its very own standard, IFRS 2: Share based payments. Employee benefits therefore include settlements made by an entity in the form of: • cash (e.g. cash salary); • goods (e.g. free products); or • services (e.g. free medical check-ups).Post-employment benefits could come in the form of defined contribution plans or defined benefit plans. Defined benefit plans are relatively complex to account for and require lots of disclosure. Although defined benefit plans are not as commonly encountered in practice asdefined contribution plans, it is still important for you to understand how to account for them.IAS 19 requires a lot of disclosure for post-employment benefits where they are defined benefit plans whereas there is either little or no disclosure required for the other types of benefits. There are, however, other disclosure requirements that emanate from other standardssuch as: • IAS 1 Presentation of Financial Statements :- requiring disclosure of the employee benefit expense • IAS 24 Related Party Disclosures: - requiring disclosure of each type of benefit provided to key management personnel • IAS 37 Provisions, Contingent Liabilities and Contingent Assets: - which may require that a contingent liability be disclosed.In addition to other standards requiring disclosure relating to the employee benefit/s, otherdisclosure may be required by the: • Companies Ordinance, 1984 : in respect of directors’ remuneration (see Part III of • Code of Corporate Governance.Schedule) 2 Short-term employee benefits (IAS 19.8 – 19.23)2.1

More about Gripping Ifrs Employee Benefitschapter 16 487 Employee Benefits Apply to Any Type of Settlement – with the Exception of Share-Basedpayments. These Payments Were Previously Included Within This Standard (Ias 19: Essay

Open Document