AS 15

1. AS 15 Employees Benefits ( EB)

2. Employee Benefit means all forms of consideration paid to employees, spouse of employees for services rendered by employees, in relation to any employer employee agreement. • Employee can be : • Temporary • Permanent • Part time • Fulltime Employees exclude Contract Labour.

3. 3. Employees benefits can be : i. Short Term Employees Benefit. (STEB) ii. Long Term Employees Benefit. (LTEB) iii. Termination Benefit (TB) iv. Post Employees Employees Benefit. (PEEB) Current Year Next 12 months LTEB PEEB Death STEB Some Payment 1. Salary of March Bonus Gratuity is made in paid in April Current Year 2. Bonus 3. Short Term compensated Retirement absence. TB

4. 4. STEB are payable within 12 month from end of current year. LTEB are payable beyond 12 month from end of current year till retirement. TB are VRS Voluntary Retirement Benefit payments. PEEB are benefits payable beyond retirements.

5. 5. Short Term Employees Benefits These benefits are payable within next 12 month services have been rendered in current year. These are not discounted Journal Entry : • Salary of March Payable in April : Salary a/c Dr To Salary Payable a/c ( Being Expenses recorded)

6. ii) Bonus of Current Year payable within next 12 month. Salary / Bonus / E.B a/c Dr To Salary Payable a/c ( Being Bonus Recorded) iii) Short Term Compensated Absence. Salary a/c Dr ( Amount next slide) To Salary Outstanding ( Being STCA recorded)

7. Amount = Value of leaves whose compensation is to be paid Value of Vested = Vested Leaves * Salary Per Day Leaves Value of Unvested = Unvested * Salary * Probability Leaves Leaves Per Day Note : Treatment of STCA is not required by SMC and SM Entities. Above entry will be reversed in next year.