POST-EMPLOYMENT BENEFITS (IAS 19)

Question 1

What are Post-Employment Benefits?

Answer 1

Employee benefits payable after the completion of employment, such as retirement benefits or post employment medical care.

Question 2

How does the defined contribution plan work?

Answer 2

The entity pays contributions into a fund and does not have an obligation to pay further contributions if the fund does not hold sufficient assets

Question 3

Does the entity have an obligation to pay further contributions if the fund does not hold sufficient assets?

Answer 3

No

Question 4

When is recognized the contribution expense/liability?

Answer 4

When the employee has rendered the service

Question 5

How is calculated the net defined benefit liability? In which statement is it recognized?

Answer 5

The net defined benefit liability is equal to the deficit (surplus) in the defined benefit plan and the possible effect of the asset ceiling.

Recognize the net defined benefit liability (asset) in the statement of financial position

Question 6

What is the net interest? In which statement are recognized past-service costs and net interest?

Answer 6

The net interest is the change in the defined benefit liability (asset) arising from passage of time.

Recognize past service costs and net interest in profit or loss.

Question 7

Are there any remeasurements? If yes, in which statement are recognized?

Answer 7

Remeasurements are actuarial gains and the return on plan assets.
Recognize remeasurements in other comprehensive income.