IAS 19 Employee Benefits Archives – Page 3 Of 3 – FAQ | IFRS

IAS 19 Components of defined benefit cost

IAS 19 Components of defined benefit cost

120 An entity shall recognise the components of defined benefit cost, except to the extent that another IFRS requires or permits their inclusion in the cost of an asset, as follows:

  1. service cost (see paragraphs 66–112) in profit or loss;
  2. net interest on the net defined benefit liability (asset) (see paragraphs 123–126) in profit or loss; and
  3. remeasurements of the net defined benefit liability (asset) (see paragraphs 127–130) in other comprehensive income.

121 Other IFRSs require the inclusion of some employee benefit costs within the cost of assets, such as inventories and property, plant and equipment (see IAS 2 and IAS 16). Any post-employment benefit costs … Read more

IAS 19 Presentation defined benefit plan

Offset IAS 19 Presentation defined benefit plan

131 An entity shall offset an asset relating to one plan against a liability relating to another plan when, and only when, the entity:

  1. has a legally enforceable right to use a surplus in one plan to settle obligations under the other plan; and
  2. intends either to settle the obligations on a net basis, or to realise the surplus in one plan and settle its obligation under the other plan simultaneously.

132 The offsetting criteria are similar to those established for financial instruments in IAS 32 Financial Instruments: Presentation.

Current/non-current distinction

133 Some entities distinguish current assets and liabilities from non-current assets and liabilities. This Standard does not specify whether an … Read more

IAS 19 Disclosure defined benefit plan

IAS 19 Disclosure defined benefit plan

135 An entity shall disclose information that:

  1. explains the characteristics of its defined benefit plans and risks associated with them (see paragraph 139);
  2. identifies and explains the amounts in its financial statements arising from its defined benefit plans (see paragraphs 140–144); and
  3. describes how its defined benefit plans may affect the amount, timing and uncertainty of the entity’s future cash flows (see paragraphs 145–147).

136 To meet the objectives in paragraph 135, an entity shall consider all the following:

  1. the level of detail necessary to satisfy the disclosure requirements;
  2. how much emphasis to place on each of the various requirements;
  3. how much aggregation or disaggregation to undertake; and
  4. whether users of financial statements need
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IAS 19 Other long-term employee benefits

IAS 19 Other long-term employee benefits

153 Other long-term employee benefits include items such as the following, 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 service:

  1. long-term paid absences such as long-service or sabbatical leave;
  2. jubilee or other long-service benefits;
  3. long-term disability benefits;
  4. profit-sharing and bonuses; and
  5. deferred remuneration.

154 The measurement of other long-term employee benefits is not usually subject to the same degree of uncertainty as the measurement of post-employment benefits. For this reason, this Standard requires a simplified method of accounting for other long-term employee benefits. Unlike the accounting required for post-employment benefits, this method does not … Read more

IAS 19 Termination benefits

IAS 19 Termination benefits

159 This Standard deals with termination benefits separately from other employee benefits because the event that gives rise to an obligation is the termination of employment rather than employee service. Termination benefits result from either an entity’s decision to terminate the employment or an employee’s decision to accept an entity’s offer of benefits in exchange for termination of employment.

160 Termination benefits do not include employee benefits resulting from termination of employment at the request of the employee without an entity’s offer, or as a result of mandatory retirement requirements, because those benefits are post-employment benefits. Some entities provide a lower level of benefit for termination of employment at the request of the employee (in … Read more

IAS 19 Appendix A Application Guidance

IAS 19 Appendix A Application Guidance

This appendix is an integral part of the IFRS. It describes the application of paragraphs 92–93 and has the same authority as the other parts of the IFRS.

A1 The accounting requirements for contributions from employees or third parties are illustrated in the diagram below.

IAS 19 Appendix A Application Guidance

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