IAS 19 Employee Benefits Flashcards
The main principle of IAS 19 is that all the cost of provinding employee benefits shall be recognised in the period when services are rendered rather than when?
Rather than when it is paid/payable
What are short-term employee benefits?
They are employee benefits that are expected to be settled wholly in 12 months after the end of the annual reporting period in which the employees render their services
Share some examples of short-term employee benefits.
Compensated absences, and profit sharing or bonus plan
Give examples of accumulating compensating absences
Paid leave for vacation
An example of a non-accumulating absences cannot be carried forward. True or false?
True. They include maternity leave or sick pay if unused past entitlement does not increase
An entity shall recognise the expected cost of profit sharing and bonus payment when?
The entity has legal and constructive obligation to make those payments as a result of past events
Are post-employment benefits the same as long-term employee benefits?
No. Long-term employee benefits include Sabbatical leave, Jubilee(15 yrs of service), Long service bonuses, and long term disability benefits
What are actuarial assumptions?
Actuarial assumptions are the entity’s best estimate of the variables that will determine the ultimate cost of providing post-employment benefits
Actuarial assumptions comprise demograhic assumptions and financial assumptions. Yes or no?
Yes
Demographic assumptions include mortality rates, rate of employee turnover , disability, and claim rates under medical plans
True
What does financial assumption deal with?
Discount rates,, future salary, and benefit levels, future medical cost and taxes payable by the plan relating benefits
