Employee Benefit Expenses

Question 1

where can you find employee benefits in the ASF

Answer 1

In the income statement, we can find a detailed breakdown of employee benefit expenses . in the notes to accounts.

Question 2

What are the two types of Employee Business Expenses?

Answer 2

1. EBE - paid yearly/ At service:
   Examples include salary and wages - that form the large category.
2. EBE - Pension I Referred Accrual:
   Examples are contributions to PFs, contributionS to other funds, share - based compensation, etc.the payment for
   which are deferred. They are payments in the future for services that have been done in the past. They are not paid regularly or yearly.

Question 3

What are the key points to note if a company has ESOPs in place?

Answer 3

→ the company discloses the ESOP policy and how it is used in detail in the Notes to Accounts.

→ Apart from the different stock programs the company nas run you can also see:
→ → → The number of stocks issued
→→ → The grant date for the stock
→→ → The exercise price of the stock
→→ → The fair value on the grant date
→→ → The fair value of thecompany’s stock as on date

→All the above items have to be takeninto account to
understand the different stocks their issue prices.

→ The Overallexpense for the year canbe found in EBE section. We must count the share based compensation as non-yearly expenses.

→ we must understand what part of EE is attached to yearly payments and what part isrelated to non-recurring payments.