Employee Benefits Essay Example | Topics and Well Written Essays - 1500 words

Employee Benefits - Essay Example In 1998 and 2000, other revisions on worker remuneration were effected. There was a proposition in 2002 to modify employee share based compensation. Actuarial gains and losses concerning employee benefits were acknowledged in 2004. In 2007, ceilings were introduced into defined benefit assets and funding requirements. In 2009, the ceilings on defined benefit assets and funding requirements were published as exposure drafts and discount rate for employee benefits using market yield corporate bonds was proposed. IAS 19 final interpretations were also published in 2009. The objective of IAS 19 Employee Benefits is to provide guidelines to both business and non-business organizations on how to measure, present and disclose the expenses of providing employee benefits. IAS 19 covers all known employee related expenditures. The employee benefits are expenses incurred by entities in exchange of services rendered by their employees. They include salaries and wages, profit sharing plans, compensated absences, leaves, deferred compensation programs, bonuses and free or subsidized good or services given to employees. It also covers various benefits paid to employees. The benefits are medical and life insurance benefits, pensions, house benefits, jubilee benefits, post employment medical and life insurance as well as termination benefits (Deloitte 2010c). IAS 19: Employee benefits suggest that organizations should acknowledge a liability or an expense resulting from consuming the service of an employee in the year in which the service was consumed. Therefore, IASB and IAS 19 recognize expenses incurred on the employee benefits on the year in which it occurred. The measurements, presentation and disclosures covers definite accounting period only. Measurement is defined as an action to obtain a magnitude of a given item or process. Therefore, employee benefits measurement is an attempt to assign value to what employees