FRS 19 (Employee benefits): "recognize a liability when employee has provided a service in exchange for employee benefits paid in the future; Recognize expense when enterprise consumes economic benefit arising from the service provided by an employee in exchange for employee benefits; short term employee benefits, post-employment benefits, other long term employee benefits and termination benefits; short term are those expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service; recognize undiscounted amount of short-term benefits as a liability, and an expense as well; recognize the expected cost of profit sharing and bonus payment when the entity has a present legal or constructive obligation to make such payment; CPF is like a post-employment benefit plan (defined contribution); defined benefit plans are difficult to compute, with a lot of management assumptions; actuarial gain/losses enter OCI; long term benefits are like sabbatical leave, long service benefits etc; for termination benefits, recognize liability and expense when entity can no longer withdraw those benefits or when it recognizes cost for a restructuring within FRS 37." - Marcus Chan
Posted on: Mon, 26 Aug 2013 13:03:05 +0000
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