1. Accounting Standard 15
Employee Benefits
Made By:
Ankit Dabral
M.B.A.

2. INTRODUCTION
O Accounting for Retirement Benefits in
the Financial Statements of Employers”
issued by I.C.A.I.
O Employee benefits are all forms of
consideration given by an enterprise in
exchange for service rendered by
employees.

3. PURPOSE
This statement deals with the
accounting treatment of the
cost of the retirement benefits
in the financial statements of
employers.

4. Short-term Employee Benefits
Wages & salaries
Profit-Sharing
Bonus
Perquisites
Post-Employment Benefits
Gratuity
Pension
Medical Care
Provident Fund
Leave Encashment
Termination Benefit
Voluntary
Involuntary
TYPES OF BENEFITS

5. Benefits Schemes
Defined Benefit Scheme :
The benefit payable to the employee is
determined with reference to factors such as:
Percentage of final salary.
Number of years of service.
The grade of the employee.
The contribution is generally expressed as a
percentage of salary for the entire group of
employees covered by the scheme.

6. ACCOUNTING TREATMENT
O The cost of retirement benefits
should be accounted for in the
period during which the employee
renders services.
O Thus, accounting for retirement
benefit cost when the employee
leaves, i.e. on cash basis.

7. Any Questions ? ? ? ?