IAS19 on Long-term benefits - Printable Version +- Accountancy Forum (https://www.accountancy.com.pk/forum) +-- Forum: The Profession (https://www.accountancy.com.pk/forum/forum-the-profession) +--- Forum: Accounting and Audit (https://www.accountancy.com.pk/forum/forum-accounting-and-audit) +--- Thread: IAS19 on Long-term benefits (/thread-ias19-on-long-term-benefits) |
IAS19 on Long-term benefits - mourits - 10-15-2003 Hello guys.... I have a case where I'd like to get everyone's opinion on. A company provides long-term service rewards, whereby after completion of 5 years of service (resignation/retirement need not occur) an employee is rewarded 5 times his/her salary. And it goes on for every 5 years of service completed. Let's say, my employee has completed his/her 2nd year of employment. My question is, under IAS19, how should we calculate the costs/liability? - Should we calculate the PV of the benefits due in 3 years' time only? This implies that the costs/liability for service beyond the first 5 years will be calculated starting from the 6th year of service. OR - Should we now take into account the benefits for services beyond the first 5 years, that is, we also calculate the liability for leng service rewards for the 10th year, 15 year, etc.... Your comments will be greatly appreciated... Thanks, M - sadaf - 10-16-2003 Hi As far as IAS concern u need to just concern for upcomming 5 yrs not the period that is not forseable so if 3 yrs passed you need to book a iability for 3 yrs Regards Sadaf |