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    Roque Module No.3 PDF

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    Elcied Roque
    IAS 19 establishes guidelines for accounting and disclosing different types of employee benefits. It classifies benefits into four categories: 1) short-term employee benefits paid within 12 months, 2) post-employment benefits paid after employment ends such as pensions, 3) other long-term benefits besides short-term or post-employment, and 4) termination benefits provided in exchange for ending employment. The standard provides guidance on recognizing obligations and expenses for each category of benefits.

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    Roque Module No.3 PDF

    Uploaded by

    Elcied Roque
    57 views2 pages
    IAS 19 establishes guidelines for accounting and disclosing different types of employee benefits. It classifies benefits into four categories: 1) short-term employee benefits paid within 12 months, 2) post-employment benefits paid after employment ends such as pensions, 3) other long-term benefits besides short-term or post-employment, and 4) termination benefits provided in exchange for ending employment. The standard provides guidance on recognizing obligations and expenses for each category of benefits.

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    IAS 19 establishes guidelines for accounting and disclosing different types of employee benefits. It classifies benefits into four categories: 1) short-term employee benefits paid within 12 months, 2) post-employment benefits paid after employment ends such as pensions, 3) other long-term benefits besides short-term or post-employment, and 4) termination benefits provided in exchange for ending employment. The standard provides guidance on recognizing obligations and expenses for each category of benefits.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    57 views2 pages

    Roque Module No.3 PDF

    Uploaded by

    Elcied Roque
    IAS 19 establishes guidelines for accounting and disclosing different types of employee benefits. It classifies benefits into four categories: 1) short-term employee benefits paid within 12 months, 2) post-employment benefits paid after employment ends such as pensions, 3) other long-term benefits besides short-term or post-employment, and 4) termination benefits provided in exchange for ending employment. The standard provides guidance on recognizing obligations and expenses for each category of benefits.

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    of 2

    ROQUE, ELCIED LEAGAS

    BSBA HR 2-B
    MR. DOMINADOR
    HRM

    MODULE NO. 3

    1. Explain how importance of Compensation and Benefits to the employees.

    It is critical in a company to keep employees motivated, as Employee satisfaction, job


    performance, and remuneration and benefits are all strongly related retention. Benefits raise the
    value of working for a specific organization and may improve performance. the employee and
    team member's health and quality of life. In terms of remuneration, boost employee productivity
    by informing them that the organization for which they work involves They are satisfied with the
    compensation. It contributes to a more positive and productive work environment. when a
    company offers competitive and equitable salary and benefits
    to their staff.

    2. Watch, listen and Discuss the IAS 19 as presented in this video:

    The IAS 19 was first published in 1983 and has since been improved upon and revised
    numerous times. The most recent major modification was released in 2011. IAS 19 was created
    with the intention of regulating and disclosing different types of employee perks. Employee
    benefits are typically given in exchange for the work that employees perform for their employers.
    In addition to salary, which is the employee's considered benefit, there are other benefits related
    to salary, such as paid time off, bonuses, holidays, and so forth. Since IAS 19 mandates the use of
    the accrual principle, the obligation for the benefit must be recognized when the employee
    rendered services to the employer, and the expense must be recognized when the employer
    used the benefits from.

    It classify employee’s benefits into 4 main categories:

    1. Short term employee benefits- it is payable within 12 months after the end of the reporting
    period and this type of category is usually provided for current employees. For example is
    salary, paid annual leave, paid sick leave and all of this are paid within 12 months.

    Employee benefits that must be paid out within a year after the end of the period in
    which the staff members provide the relevant service. It consists of pay, earnings, and social
    benefits security payments, paid time off, paid time off for illness, profit sharing, bonuses, and
    a variety of non-cash rewards for present workers, including compensated health care, a car, and
    housing. Employees view these advantages as either expenses or maybe assets when
    authorized by the other criteria, such as the cost of inventory conversion,
    to IAS-2. A obligation or incurred expense, on the other hand, is recorded in the amount of an
    less the amount previously paid in expenses.

    2. Post-employment benefits- this category of benefit are paid after the completion of
    employment and it is other than termination benefits. They are provided for employee’s
    service rather than due to termination of employment. For example of it are pension,
    retirement bonuses, post-employment medical care and etc.

    Post-employment benefits can be divided into two categories: defined contribution plans
    and defined perks programs. Knowing if we are interacting with the other one is crucial because
    The bookkeeping is handled very differently. Two key distinctions exist between The defined
    benefit and defined contribution programs that will assist us in making sense differentiating and
    categorizing. First, the beginning and end of the entities' or employers' obligations
    The second is who is responsible for the plan's actuarial and investment risk. Clearly
    stated contribution programs, the employer is typically only required to make a fixed level of
    fund contributions. And then, in accordance with the quantity of the funds, the employee will
    receive benefits. contributions, investment gains on the assets of the fund, etc. so that we can
    the claim that Employees are responsible for investment and actuarial risk. when a defined
    benefit plan is in place Employer typically has a duty to offer current or former employees the
    agreed-upon benefit employees. For instance, when a collective bargaining agreement is struck
    with a labor union a contract indicating that employees will get specific perks upon retirement,
    the employee regardless of any payments to the fund, those advantages. In light of this, actuarial
    and investment Risk resides with the entity.

    3. Other long-term employee benefits- it is simply other than short-term benefits, post
    employment benefits and termination benefits provided for current employees. For example
    are Jubilee or anniversary bonuses, deferred compensations, long service leave and etc.

    Other long-term benefits are accounted for similarly to defined benefit plans.
    yet simpler because they are less prone to uncertainty than defined benefits
    plans.

    4. Termination benefits- It is quite different from the other first three categories, because they
    are provided in exchange for termination of employment rather than for employee service. For
    example are severance payments, bonuses for accepting the termination of employment
    voluntarily and etc.

    The difference between this category and the previous one is that the event that results in
    benefit is 19 establishes as a number of termination of employment and not employee service
    criteria and guidelines for accounting for termination benefits, including whether benefits are
    eligible for benefits upon termination. Depending on their nature, these advantages are
    accounted for differently, so if the post-employment benefits we've improved, then the entity's
    termination benefits apply when taking post-employment benefits into consideration.

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