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MFRS 119: EPLOYEE BENEFITS, MFRS 119 : EMPLOYEE BENEFITS - Coggle Diagram
MFRS 119: EPLOYEE BENEFITS
MFRS 119 : EMPLOYEE BENEFITS
OBJECTIVE
To prescribe the accounting and disclosure for employee
benefits.
The standard require to recognise
liability
of employee provide services and
expense
of employer/entity receive from the service provided.
DEFINITIONS
forms of consideration given by entity in exchange of
service provided by employees or the termination of
employment
4 CLASSIFICATION OF EB
SHORT-TERM EMPLOYMENT
Payable within 12 months end of reporting
provide for current employees, ex: salary, paid annually,
non-monetary benefits like medical care, housing, car
2. POST EMPLOYMENT BENEFIT
paid after
the completion of employment
provided for employee service rather due termination employment
2 TYPES OF POST EB
1. DEFINED CONTRIBUTION PLANS
entity pays fixed contribution into separate entity and no legal obligation to pay further contribution if the fund does not hold sufficient asset to pay employee benefit in current and prior period service provided
DEFINED BENEFIT PLANS
cannot account for expense & liability
at retirement time
need to accrued expenses every year employment service
Defined benefit liability (asset) by
the PV of defined benefit obligation (DBO) less FV of plan asset
Defined benefit asset = determine the asset ceiling
Asset Ceiling: PV of economic benefit available form funds from plan or reduction in future contribution to the plan (SOFP)
_para 8
_
under para 64,
WIL surplus defined benefit plan VS asset ceiling discount rate
para 83
Defined Benefit Liability = Ignore asset ceiling
Defined benefit cost:
current service cost
( increase in DBO employment service) &
past service cost
(changes in PV of DBO employment service) (SOPL)
Difference of DCP&DBP
3. OTHER LONG-TERM BENEFIT
other than any category and
provide for current employee
ex: anniversary bonus, deferred compensation
4. TERMINATION BENEFIT
provide exchange for termination employment before retirement date
Entity decide to terminate employment before expected retirement date
Employee decide to accept offer of benefit exchange the termination date of employment
ex: bonus accept termination of employment voluntarily
MFRS 119 STANDARD