EMPLOYEES

BENIFITS
PAS 19
Reporters: Ladao, Camiel
Arangonin, Trisha Necole
Asis, John Lorick
Employees Benefits
are all forms of consideration given by an entity in
exchange for services rendered by employees or for the
termination of employment.
• The employee benefits include: ( SPOT )
•A. Short-term employee benefits
•B. Post-employment benefits
•C. Other long-term employee benefits
•D. Termination benefits
 Short-term Employee Benefits
• are employee benefits other than termination benefits which are
expected to be settled wholly within 12 months after the end of
annual reporting period in which the employees render related
services.
A. Salaries, wages and social security contributions
B. Short-term compensated or paid absence
C. Profit sharing and bonuses payable
D. Non-monetary benefits
Expenses xxx
Cash xxx
Expenses xxx
Payable xxx
Asset xxx
Cash xxx
Post Employment Benefits
are employees benefits, other than termination benefits and short-term
employees, which are payable after completion of employment.
a. Defined contribution plan- is a postemployment benefit plan under
which an entity's pays fixed contributions into a separate entity known as
fund.
- Contributory

- Non Contributory
b. Defined benefit plan- is a postemployment benefit plan wherein an employee is
guaranteed specific or definite amount of benefit which is usually related to his/her
salary and years of service. Benefit plan may be unfunded or funded
-
Contributory

Entity fund employees

Non Contributory

Entity fund employees

Funded third party

Entity Employees
fund
Un-funded

Entity fund General use

 Components of defined Benefit Cost
1.Service Cost
a. Current Service Cost
is the increase in the present value of defined benefit obligation resulting from employee service in the current period.
b. Past Service Cost
is the cost under a defined benefit plan for services rendered by employees in prior periods resulting from the
introduction of a defined benefit plan or amendment of an existing plan or curtailment of an existing plan.
c. Any gain or loss in settlement
2. Net Interest
a. Interest Expense on defined benefit obligation
this amount is computed by multiplying the defined benefit obligation at the beginning of the reporting period by the
discount rate
b. Interest Income on plan asset
this amount is computed by multiplying the fair value of the plan assets at the beginning of the reporting period by
the same discount rate.
Other long-term benefits
is a residual definition, these are all employee benefits other than short-term, post
employment and termination benefits. Examples are:

a. Long-term paid absences( sabbatical leave)

b. Jubilee or other long service benefit
c. Long-term disability benefits
d. Profit sharing and bonuses
e. Deferred compensation
Termination benefits
are employee benefits provided in exchange for the termination of an
employees employment as a result of either:

a. An entity's decision to terminate an employees

employment before the normal retirement date.
b. An employees decision to accept an offer of benefits in
exchange for the termination of employment.