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Accounting standard 15 (Employee Benefits)

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Accounting standard 15 (Employee Benefits)

  1. 1. Accounting Standard 15 Employee Benefits Made By: Ankit Dabral M.B.A.
  2. 2. INTRODUCTION O Accounting for Retirement Benefits in the Financial Statements of Employers” issued by I.C.A.I. O Employee benefits are all forms of consideration given by an enterprise in exchange for service rendered by employees.
  3. 3. PURPOSE This statement deals with the accounting treatment of the cost of the retirement benefits in the financial statements of employers.
  4. 4. Short-term Employee Benefits Wages & salaries Profit-Sharing Bonus Perquisites Post-Employment Benefits Gratuity Pension Medical Care Provident Fund Leave Encashment Termination Benefit Voluntary Involuntary TYPES OF BENEFITS
  5. 5. Benefits Schemes Defined Benefit Scheme : The benefit payable to the employee is determined with reference to factors such as: Percentage of final salary. Number of years of service. The grade of the employee. The contribution is generally expressed as a percentage of salary for the entire group of employees covered by the scheme.
  6. 6. ACCOUNTING TREATMENT O The cost of retirement benefits should be accounted for in the period during which the employee renders services. O Thus, accounting for retirement benefit cost when the employee leaves, i.e. on cash basis.
  7. 7. Any Questions ? ? ? ?

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