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1. Welcome To our Presentation
Group -07

2. Md Ashraful Islam Saron
ID NO: 22 AIS 043

3. IAS-19
Employee Benefits
Overview
IAS 19 Employee Benefits (amended 2011) outlines the accounting requirements for employee
benefits, including short-term benefits (e.g. wages and salaries, annual leave), post-employment
benefits such as retirement benefits, other long-term benefits (e.g. long service leave) and
termination benefits. The standard establishes the principle that the cost of providing
employee benefits should be recognized in the period in which the benefit is earned by the
employee, rather than when it is paid or payable, and outlines how each category of employee
benefits are measured, providing detailed guidance in particular about post-employment
benefits. IAS 19 (2011) was issued in 2011, supersedes IAS 19 Employee Benefits (1998), and
is applicable to annual periods beginning on or after 1 January 2013.

4. Objective:
The main objective of IAS 19 is to prescribe the
accounting and disclosure for employee benefits.
IAS 19 requires and entity to recognize:
• • a liability when an employee has provided
service in exchange for employee benefits to
be paid in the future; and
• • an expense when the entity consumes the
economic benefit arising from service provided
by an employee in exchange for employee
benefits.
• That’s the clear demonstration of matching principle—to
recognize an expense in the period when matching
revenue is recognized.

5. Types of Employee Benefits:

6. Measurement:
• Defined Contribution Plans
• Defined Benefit Plans
Key Principles:
o Service Cost
o Net Interest on the Net Defined
Benefit Liability (Asset)
o Re-measurements
o Disclosure
Amendments
The standard has undergone amendments over time, and it's
essential to refer to the latest version of the standard for the most
up-to-date information Compliance with IAS 19 is crucial for
entities as it affects the financial statements and provides
transparency about the costs associated with employee benefits.

7. Md Shakil
ID NO: 22 AIS 030

8. LAFARGEHOLCIM BANGLADESH LIMITED
The following information is provided in relation to a defined benefit plan operated by MC Ltd. All transactions
are assumed to occur at the reporting date of the relevant year. At 1 January 2021, the present value of the
obligation was $140 million and the fair value of the plan assets amounted to $80 million. The following is
relevant:
Particulars 2021 2022
Discount rate at start of year
Current and past service cost ($m)
Benefits paid ($m)
Contributions paid into the plan ($m)
PV of obligation at 31 December ($m)
Fair Value of plan assets at 31 December ($m)
4%
30
20
25
200
120
3%
32
22
30
230
140
Required:
a) Reconcile the movement for the year in the plan asset and obligation.
b) Determine the amounts to be taken to profit or loss and other comprehensive income for the years 31
December 2021 and 2022. i.e. prepare extract .
c) Determine the net plan obligation or asset at 31 December 2021 and 2022

9. Particulars 2021
$m
2022
$m
PV at 1 January
Interest expense (140 x4%)/ (200 x3%)
Current and past service cost
Benefits paid
Actuarial (gain)/loss
140
5.6
30
(20)
44.4
200
6
32
(22)
14
PV of obligation at 31 December 200 230
Reconciliation in Plan Asset
Particulars 2021
$m
2022
$m
Fair value at 1 January
Interest income (80 x4%)/ (120 x3%)
Contributions paid
Benefits paid
Actuarial gain/(loss)
80
3.2
25
(20)
31.8
120
3.6
30
(22)
8.4
Fair value at 31 December 120 140

10. b) Amounts taken to profit or loss and other comprehensive income
Profit or loss section 2021 2022
Current and past service cost
Net interest expense (5.6-3.2)/(6-3.6)
30
2.4
32
2.4
Employee benefit expense recognised in profit or
loss
32.4 34.4
Other comprehensive income section:
Actuarial (gain)/Loss on obligation
Actuarial (gain)/Loss on plan asset
44.4
(31.8)
14
(8.4)
Net actuarial loss recognised in OCI 12.6 5.6
C) Amounts to be recognised in Statement of financial position
Non-current Liabilities 2021 2022
PV of Obligation
Fair value of Plan asset
200
(120)
230
(140)
Net Defined benefit obligation 80 90

11. LAFARGEHOLCIM BANGLADESH LIMITED
Notes to the consolidated financial statements
Employees' benefit schemes
i) Gratuity plan- funded
ii) Gratuity plan- unfunded
iii) Gratuity plan
iv) Provident fund
v) Workers' profit participation and welfare fund

12. Shah Md Toufiq
ID NO: 22 AIS 026

13. 4. Case Study (LafargeHolcim Bangladesh Ltd): Application in the Institution's
Annual Report
4.1. Overview of the Institution and Its Employee Benefits Scheme
LafargeHolcim Bangladesh Ltd. operates various employee benefit schemes as outlined in their annual report. These include:
 Gratuity Plans: Both funded and unfunded gratuity plans are in place. The funded gratuity plan was operational until January
15, 2014, after which it was converted to a funded scheme. The unfunded gratuity scheme is for employees of Holcim Cement
Bangladesh Limited (post-amalgamation) and LUMPL. Provisions for these plans are made for all eligible employees, and the
liability to each employee is settled in cash upon separation. Actuarial valuations of these plans are carried out by a
professional actuary (pages 118, 158, 168.)
 Provident Fund: The company also operates a recognized provident fund scheme with equal contributions from employees
and the company. This fund is administered by a Board of Trustees (pages 118, 158.)
 Workers' Profit Participation and Welfare Funds: The company recognizes a provision for these funds at 5% of income
before tax as per the Bangladesh Labour Act, 2006 (Amended in 2013) (page 118.)

17. Sumana Mostafa
22 AIS 036

18. Objectives of IFRS - 15
To establish the principles that an entity shall apply to report useful
information to users of Financial Statements about the nature, amount, timing
& uncertainty of revenue and cash flows arising from a contract with a
customer.
IFRS
15
on
principles
Nature of contract
Timing
Uncertainty of revevue
Cash flows from contract

19. Revenue Recognition Model
Identify the contract(s) with the customer 01
Identify the performance obligation in the contract 02
Determine the transaction price 03
Allocate the transaction price to the performance obligations 04
Recognize revenue when (or as) each performance
obligation is satisfied 05

20. Revenue Recognition Over Time
 Contract with a customer where revenue is recognized over time,
there are three rules to be aware of-
 If the expected outcome is a profit:
Revenue and costs should be recognized to the progress of the
contract. Output method (Work certified to date compared to total
contract price). Input method (Costs incurred to date as a proportion
of total expected costs)
 If the expected outcome is a Loss:
The whole loss should be recognized immediately, recording a
provision as an onerous contract.
 If the expected outcome or progress is unknown:
Revenue should be recognized to the level of recoverable costs.
Contract cost should be recognized as an expense in the period in
which they are incurred.

21. 22 AIS 007
Md solaiman

22. Business case
EXAMPLE 01
Company XYZ Ltd has entered into a contract to provide a package of goods and
services to a customer. The contract specifies the following details:
The total transaction price is $200,000.
The contract includes the sale of a product and the provision of related maintenance
services.
The standalone selling prices are estimated as follows:
Product: $150,000
Maintenance services: $50,000
The product is delivered at the start of the contract, and maintenance services are
provided over the next 12 months.

23. Solution:
Step 1: Identify the Contract and Performance Obligations
A contract exists with two performance obligations: the sale of the product
and the provision of maintenance services.
Step 02 : Performance Obligations
There are performance obligation within the contract
1. Supply the product
2. Maintenance services
Step 3: Determine the Transaction Price
The transaction price is $200,000.

24. Step 4: Allocate the Transaction Price
Allocate the transaction price based on the standalone selling prices:
Product: $150,000 should be allocated to sales the product
50000tk should be allocated as Maintenance services
Step 5: Recognize Revenue Over Time or at a Point in Time
1. Product (Performance Obligation 1):
1.Recognize revenue at the start of the contract when the product is delivered.
2. Maintenance Services (Performance Obligation 2):
1.Recognize revenue evenly over the 12-month period.
2.Monthly recognition = $50,000 / 12 months = $4,166.67
So, Product Revenue: $150,000
Maintenance Services Revenue: $4,166.67 per month

25. Example 02
Wholesaler Ltd supplies popcorn machines to retailers across the UK. It
only supplies wholesale to department stores and other independent
retailers. The popcorn machines are sold to retailers for £ 10.00 each, with
each
popcorn machine costing £ 5.00 to manufacture.
Wholesaler Ltd estimates that 8% of the its popcorn machine will be
returned by customers. Wholesalers Ltd has a contract term with all of its
customers to allow any returns for a full refund within three months of the
date of sale.
On 1 April 20X8, Wholesaler Ltd sold 500 machines to one of its largest
customers, the popular home store
Lakeland.
Required: How should the revenue be recognized?

26. Solution:
When the popcorn machines are sold revenue is recognized in
respect of machines that are not expected to be returned, and
a liability is recognized in respect of machines that are
expected to be returned:
Revenue (500 units × £ 10 per unit) 5,000
Less: Proportionate return expected (5,000 × 8%) (400)
Revenue recognized on 1 April 4,600

27. Example 03
KGC sold 500 detergent per 100 to MA traders
A contract inception:
Unlike other customer this contract enjoy an early settlement
discount of 6% and now has also been offered a 10% discount
on there next order
A right of return exists for defective product the entity's best
guess is that 10 unit will be returned for a cash refund.

28. solution
Step 1: Identify the Contract and Performance Obligations
A contract exists with two performance obligations: the sale of the product
and the provision of maintenance services.
Step 02 : Performance Obligations
There are performance obligation within the contract
1. Product units
2. Discount rights
3. Right of return

29. Step 3: Determine the Transaction Price
Transaction price is 50000 tk
Step 4: Allocate the Transaction Price
500000 less 6% = 470000
10units refund liability 47000/500 unit *10= 940
So allocation =47000 - 940=46,060
Recognize amount as cost of goods sold 46,060 and returned as inventory
940

30. Referances
• https://www.scribd.com/document/476017985/IFRS-15-math
• ICMAB QUESTION (2018)
• STUDY MANUAL (FINANCIAL ACCOUNTING AND REPORTING)

31. Md Jubayed Hossen
22 AIS 009

32. Practical Implementation of IFRS 15
at Anzec Memorial
32

33. Introduction to IFRS 15
• IFRS 15, "Revenue from Contracts with Customers," by IASB.
• Unified framework for global revenue recognition.
• Replaces previous guidance, introduces a five-step model.
33

34. Anzac Memorial Revenue Streams
• Overview of Anzac Memorial's role in military history.
• Application of IFRS 15 to retail sales, services, exhibitions.
• Identification of key revenue sources and associated contracts.
34

35. Disclosures, Audits, and Examples
35
• IFRS 15 disclosure importance for transparency.
• Audit procedures for compliance and reliability.
• Practical examples: Retail sales, commemorative
services, virtual exhibitions.