Download Quick Reference on Indian Accounting Standard (Ind AS) 19, Employee Benefits
Ind AS 19: Employee Benefits
The objective of Ind AS 19 is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognise:
(a) a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and
(b) an expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits.
Employee benefits are all forms of considerations given by an entity in exchange for service rendered by employees or for the termination of employment.
Employee benefits include:
- Short-term employee benefits
- Post-employment benefits
- Other long-term employee benefits
- Termination benefits
Short-term employee benefits are employee benefits (other than termination benefits) that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service.
Short-term employee benefits include items such as the following, if expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related services:
a) wages, salaries and social security contributions;
b) paid annual leave and paid sick leave;
c) profit-sharing and bonuses; and
d) non-monetary benefits (such as medical care, housing, cars and free or subsidised goods or services) for current employees.