Learning Unit 7 - Employee benefits Flashcards
Define what are employee benefits in terms of IAS 19.8
All forms of consideration
Given by an entity in exchange for
- services rendered by employees or
- the termination of employment
Define what are short-term employee benefits in terms of IAS 19.9-25
- employee benefits that are
- expected to be settled wholly before 12m after the end of the period
- in which the employees rendered the related service
- other than termination benefits
What are the 4 categories of short-term benefits?
- Wages, salaries and social security
- Paid Leave
- Profit sharing and / or bonus
- Non-monetary benefits (car, medical aid housing etc.)
Define what are post-employment benefits (IAS 19.26-152)
Employment benefit that are:
payable after the completion of employment other than:
- short-term employee benefits, &
- termination benefits
What are the two categories to classify post-employment benefits?
Defined contribution plan
Defined benefit plan
Define contribution plans in terms of IAS 19.50-54
Post-employment benefit plans
Under which an entity
- pays fixed contributions into a separate entity (fund); and
- will have no legal or constructive obligation to pay further contributions if the fund does not have sufficient assets to pay all employee benefits relating to employee service
Define benefit plants in terms of IAS 19.8
Post-employment benefit plans
Other than defined contribution plans
Define other long-term benefits in terms of IAS 19.8
All employee benefits other than:
- short term EB
- Post-employment benefits; or
- Termination benefits
Define termination benefits in terms of IAS 19.8
Termination benefits are:
Employee Benefits as a result of either
- the entity’s decision to terminate employment before retirement age; or
- employee’s decision to accept an offer of benefits in exchange for termination of employment. IAS 19.8
