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
- 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, postemployment benefits and termination benefits. Measurement is similar to defined benefit plans.
- Termination benefits are employee benefits provided in exchange for the termination of an