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| Reader Comments on :: valuation of employee benefits | |
| The revised IAS (BAS) 19 issued by IASB for implementation from 1st Jan 2013 mentions that an employee benefit will fall under the category of 'short term' if it is wholly settled within 12 months after the reporting period end in which the employee has rendered the services. If the settlement is beyond 12 months, it falls under 'long term' and the actuarial valuation is required to be carried out. Compensated Absences: (I) Accumulating - recognize expense when service that increases entitlement is rendered; (Ii) Non Accumulating - recognize expenses when absence occurs. All shirt term benefits: Recognize the undiscounted amount as an expense/liability Posted By: Sonam Wangdi Posted on: 2018-05-15 11:57:13 | |
| BAS 19 Employee Benefits says only long term benefits need be at actuary value. Long term is defined as paid after 1 year. It will depend on your Service Rules - can employees accumulate leave and carry forward more than 1 year? If no, it is a short term benefit and actuarial valuation isn't required. If employees can carry forward into second or third year, the amount that will paid is more than today's liability because there will be 2 annual increases. Actuarial valuation is required to bring that back to today's liability Posted By: Roy Whittington Posted on: 2018-05-15 11:57:13 | |
| Since DHI owned companies have decided to go with early adoption of BAS 19 and value the gratuity of employees by an actuarial valuer from this year itslef, we in BPC are wondering if we have to get the leave encashment also valued by the actuarial valuer. Kinldy clarify on this as soon as possible... Posted By: kinley dem Posted on: 2018-05-15 11:57:13 |
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