IAS 19
Posted: 13 Jan 2022, 20:49
Hello all, this is my first post
I was reading the section on Pension accounting, particulary the following:
Short-term employee benefits
Definition of short-term employee benefits
Short-term employee benefits are benefits expected to be settled within 12 months after the end of the year when the service was rendered. They include (IAS 19.9):
wages, salaries, bonuses (incl. profit sharing) and social security contributions,
paid absences,
free or subsidised non-monetary benefits (e.g. medical care, housing).
Question: Would it be necessary to specify in this section that a short-term employee benefit is classified as such only when benefits are expected to be wholly settled within 12 months? This may be relevant given that a bonus (although unlikely) may be paid in 3 separate installments over 3 years for example, which would cause the transaction to no longer be considered a short-term employee benefit.
Regards,
Anthony
I was reading the section on Pension accounting, particulary the following:
Short-term employee benefits
Definition of short-term employee benefits
Short-term employee benefits are benefits expected to be settled within 12 months after the end of the year when the service was rendered. They include (IAS 19.9):
wages, salaries, bonuses (incl. profit sharing) and social security contributions,
paid absences,
free or subsidised non-monetary benefits (e.g. medical care, housing).
Question: Would it be necessary to specify in this section that a short-term employee benefit is classified as such only when benefits are expected to be wholly settled within 12 months? This may be relevant given that a bonus (although unlikely) may be paid in 3 separate installments over 3 years for example, which would cause the transaction to no longer be considered a short-term employee benefit.
Regards,
Anthony