Chapter 6 Section 3: Other Deferred Compensation and Benefits Flashcards
1
Q
Define postemployment benefits
A
Benefits paid by companies to former or inactive employees after their employment but before retirement. It’s a severance package.
2
Q
Do you accumulate sick pay and vacation pay?
A
Sick pay - only if vested or accumulated
Vacation - yes
3
Q
How does IFRS handle sick pay and vacation pay?
A
Accrue both as services are rendered
