IAS 19 Employee Benefits explains the accounting needs for employee benefits, like Short Term Employee Benefits (for example, annual leave, salaries and wages), post-employment benefits like retirement benefits, plus other long-term benefits (for example, long service leave) and lastly termination benefits.

1. Details about IAS 19 Employee Benefits
IAS 19 Employee Benefits explains the accounting needs for employee benefits, like Short
Term Employee Benefits (for example, annual leave, salaries and wages), post-
employment benefits like retirement benefits, plus other long-term benefits (for example,
long service leave) and lastly termination benefits. The standard sets the theory that the
expense of giving employee benefits should be known in the time in which the advantage is
gained by the employee, in place of when it is payable or paid, and shows how each type of
employee benefits are evaluated, giving thorough guidance especially about post-
employment benefits.
1. Short-term Employee Benefits
This type of employee benefits consist of all the below mentioned items -
• Bonuses and profit-sharing
• Paid sick leave and paid annual leave
• Social security contributions and salaries and wages
• Non-financial benefits (like subsidized or free goods, cars, housing, or medical care
for existing employees)

2. 2. Post-Employment Benefits
This type of employee benefits consists of items like post-employment medical care, post-
employment life insurance, retirement benefits, and various pensions. Basically there are
two types of post-employment benefits -
• Defined contribution plans
• Defined benefit plans
It is very important to understand the common differences among both the benefits and to
categorize your post-employment benefit properly, because accounting treatment is
completely dissimilar for both.
• Defined Contribution Plans
These plans under Ias 19 are post-employment benefit plans in which a unit pays fixed
amount to a separate fund. Plus it won’t have any constructive or legal obligation to pay
more contributions in case an entity doesn’t have enough assets to play all employee
benefits associating to employee service in the earlier and present periods.
• Defined Benefit Plans
These plans are usually different from defined contribution plans. Under this type of plan,
the employer has the responsibility to pay particular amount of benefits as per the plan to
the employee as well as all actuarial risk and risks thus fall on the person.
3. Termination benefits
These are employee benefits given in exchange for the ending of an employee’s
employment. A person identifies an expense and liability for termination benefits in the
beginning of the following dates -
• When the person identifies expenses reform that in under the scope of Ias 19
Employee Benefits and involves the imbursement of termination benefits.
• When the person can no longer enjoy those benefit offers and
• When the person identifies expenses for a reforming that is under the scope of Ias
37 plus involves the imbursement of termination benefits.
4. Other long-term benefits
IAS 19 recommends a tailored appliance of the post-employment benefit-model explained
above for other long-term Employee Benefit Plan: the measurement and acknowledgment
of a deficit or an extra or in other long-term employee benefit is constant with the
necessities mentioned above remeasurements, net interest and service cost are all

3. identified in loss or profit. For example, when compared to bookkeeping for defined benefit
plans, the consequences of remeasurements aren’t identified in other inclusive income.