IAS 19 Employee Benefits

All topics related to IFRS Standards.
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Asnake E
Posts: 174
Joined: 02 Oct 2019, 03:28

IAS 19 Employee Benefits

Post by Asnake E »

Hi,

As per our country's labor law, employees are entitled to paid annual leave for each year which increases by 0.5 day for each additional year of service. The unused annual leave may be carried forward to the next calendar year. And some companies carried forward the unused leave indefinitely.

My question is should the annual leave be accounted for as short term employee benefit or other long-term employee benefits as unused annual leave is carried forward?
pub_acco
Trusted Expert
Posts: 308
Joined: 19 Mar 2020, 16:40

Re: IAS 19 Employee Benefits

Post by pub_acco »

That's other long-term benefit if not expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services.
Asnake E
Posts: 174
Joined: 02 Oct 2019, 03:28

Re: IAS 19 Employee Benefits

Post by Asnake E »

Thank you.
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