This presentation about Sri Lanka accounting standards 19, employee benefits. most of the areas are discuss on this. objectives,short term,post,long term, termination. employee benifits.

2. WHAT’S MEAN BY SRI LANKA
ACCOUNTING STANDARDS
LECTURE CONDUCT BY – W.M.T.P.B. WIJEKOON

3. WHAT’S MEAN BY SRI LANKA
ACCOUNTING STANDARDS
• Accounting standards (LKAS) set by Institute of
Chartered Accountants of Sri Lanka
• This Sri Lanka accounting standards sets out the
concepts that underlie the preparation and presentation
of financial statements for external users.
• Sri Lanka Accounting Standards comprise Accounting
Standards prefixed both SLFRS and LKAS
• SLFRS refers to Sri Lanka Accounting Standards
corresponding to IFRS and LKAS are Sri Lanka

4. WHAT’S MEAN BY SRI LANKA
ACCOUNTING STANDARDS
Accounting standards tend to more things, for
example,
 To decide when to buy, hold or sell an equity investment.
 To assess the stewardship or accountability of management.
 To assess the ability of the entity to pay and provide other benefits to
its employees.
 To assess the security for amounts lent to the entity.
 To determine taxation policies.
 To determine distributable profits and dividends.Etc.

5. INTRODUCTION
TO SRI LANKA
ACCOUNTING
STANDARDS 19
LECTURE CONDUCT BY - A. MENDHION
AND R. KOKULARASU

6. SRI LANKA ACCOUNTING STANDARD
LKAS 19
EMPLOYEE BENEFITS
• BASIC PRINCIPLE OF LKAS 19 - 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.
• The objective of this Standard is to prescribe the accounting and disclosure
for employee benefits. The Standard requires an entity to recognize:
• (a) A liability when an employee has provided service in exchange for employee benefits
to be paid in the future
• (b) An expense when the entity consumes the economic benefit arising from service
provided by an employee in exchange for employee benefits.

7. OBJECTIVE OF LKAS 19
• The objective of this Standard is to prescribe the accounting
and disclosure for employee benefits. The Standard requires
an entity to recognize:
• (a) A liability when an employee has provided service in
exchange for employee benefits to be paid in the future
• (b) An expense when the entity consumes the economic
benefit arising from service provided by an employee in
exchange for employee benefits.

8. SCOPE OF LKAS 19
• This Standard shall be applied by an employer in accounting for all employee
benefits, except those to which SLFRS 2 Share-based Payment applies.
• This Standard does not deal with reporting by employee benefit plans (see LKAS
26 Accounting and Reporting by Retirement Benefit Plans).
• The employee benefits to which this Standard applies include those provided.
BASIC PRINCIPLE OF LKAS 19
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.

9. CATEGORIES OF EMPLOYEE
BENEFITS TO BE COVERED
Short term employee benefits Postemployment benefits
Post-employment benefits.
Other long term employee benefits.
Termination benefits.

10. LKAS 19 APPLIES TO
• 1. Wages and Salaries
• 2. Compensated Absences (paid vacation and sick leave)
• 3. Profit Sharing Plans
• 4. Bonuses
• 5. Medical and Life Insurance Benefits during employment
• 6. Housing Benefit
• 7. Free or Subsidized goods or services given to employees
• 8. Pension Benefits
• 9. Postemployment Medical and Life Insurance Benefits
• 10. Long-Service or Sabbatical Leave
• 11. ‘Jubilee’ Benefits
• 12. Deferred Compensation Programmers
• 13. Termination Benefits.

11. SHORT TERM EMPLOYEE
BENEFITS
LECTURE CONDUCT BY - TUSHYANTHAN

12. SHORT-TERM EMPLOYEE
BENEFITS
• Short term employee benefits being benefits that become due within 12
months after the end of the period in which the employees render the
related service.
• It includes items such as wages, salaries and social security
contributions, paid annual leave, paid sick leave, profit sharing and
bonuses (if payable within twelve months of the end of the period)
• And non-monetary benefits (such as medical care, housing, cars and free
or subsidised goods or services) for current employees

13. POST-EMPLOYMENT
BENEFITS
LECTURE CONDUCT BY D.M.S. NALAKA

14. POST-EMPLOYMENT BENEFITS (DEFINED
CONTRIBUTION AND DEFINED BENEFIT)
• Ex - pensions, other retirement benefits, postemployment life
insurance and post-employment medical care.
• Post-employment benefits are employee benefits (other than
termination benefits and short-term employee benefits) that are
payable after the completion of employment.
• Post-employment benefit plans are formal or informal
arrangements under which an entity provides post-employment
benefits for one or more employees.
• Postemployment benefit plans are classified as either
or , depending on the
economic substance of the plan as derived from its principal terms
and conditions.

15. POST-EMPLOYMENT BENEFITS
DEFINED CONTRIBUTION PLANS
Defined contribution plans are post-employment
benefit plans under which an entity pays fixed
contributions into a separate entity (a fund) and will
have no legal or constructive obligation to pay
further contributions if the fund does not hold
sufficient assets to pay all employee benefits
relating to employee service in the current and prior
periods. Under defined contribution plans the
entity’s legal or constructive obligation is limited to
the amount that it agrees to contribute to the fund.

16. • Defined benefit plans are post-employment benefit
plans other than defined contribution plans.
• Under defined benefit plans:
• (a) The entity’s obligation is to provide the agreed
benefits to current and former employees
• (b) Actuarial risk (that benefits will cost more than
expected) and investment risk fall, in substance, on the
entity. If actuarial or investment experience are worse
than expected, the entity’s obligation may be increased.

17. • (a) determining the deficit or surplus.
• (b) determining the amount of and the net defined
benefit liability (asset) as the amount of the deficit or
surplus determine
• (c) determining amounts to be recognised in profit and
loss:
• (d) determining the remeasurements of the net defined
benefit liability (asset), to be recognised in other
comprehensive income, comprising:

18. OTHER LONG-TERM
EMPLOYEE BENEFITS
LECTURE CONDUCT BY - K.NIROJAN

19. LONG-TERM EMPLOYEE BENEFITS
• Other long-term employee benefits including long
service leave or sabbatical leave, jubilee or other
long-service benefits, long term disability benefits,
and if they are not payable wholly within 12 months
after the end of the period, profit sharing, bonuses
and deferred compensation.

20. TERMINATION EMPLOYEE
BENEFITS
LECTURE CONDUCT BY – A.M.P.R.KUMARA

21. TERMINATION BENEFITS
Termination benefits are employee benefits provided in
exchange for the termination of an employee’s
employment as a result of either:
(a) An entity’s decision to terminate an employee’s
employment before the normal retirement date; or
(b) An employee’s decision to accept an offer of
benefits in exchange for the termination of
employment.

22. TERMINATION BENEFITS
An entity shall recognize a liability and expense for
termination benefits at the earlier of the following dates:
(a) When the entity can no longer withdraw the offer of
those benefits; and
(b) When the entity recognizes costs for a restructuring
that is within the scope of IAS 37 and involves the
payment of termination benefits.

23. THE STANDARD DOES NOT APPLY TO
•This standard does not apply to benefits which needs to
cover under the IFRS2 share-based payment
•This Standard does not deal with reporting by employee
benefit plans (covered under LKAS 26) e.g. accounting
and reporting by trust plans

24. THANK YOU