IAS 19 addresses the accounting practices to recognize ‘employee benefits’ expenses and liability in financial statement. The standard requires the recognition of the cost of providing employee benefit in the period when it is earned by the employee; rather than when it is paid or becomes payable. Moreover, IAS 19 gives framework to measure each category of employee benefits and provides guidance. The standard covers accounting treatment of the following types of employee benefits:
Short-term Employees benefits are expected to be settled in next 12-month, but do not include termination benefits.
Post-employment benefit plans are formal and informal arrangements with employees, where the company pays End of Service Benefits (EOSB).
Other long-term benefits are employee benefits other than short-term employee benefits, post-employment benefits and termination benefits. Measurement is similar to defined benefit plans.
Termination benefits are employee benefits provided in exchange for the termination of an employee’s employment.
How we can support you
Performing actuarial valuation of end of service benefits as per International Financial Reporting Standards (IAS 19 and IFRS for SMEs). Our service will support you in fulfilling the requirements enforced by regulatory framework. We always try to minimize our turnaround time without compromising quality of service. We can fulfill clients’ requirements in shortest turnaround time.