ACCT3321 Study Guide - Final Guide: Accrual, Vise, Defined Contribution Plan
EMPLOYEE BENEFITS
- All forms of consideration given by an entity in exchange for services
rendered by employees or for the termination of employment
- A liability arises when employees provide employment services in exchange
for benefits payable by the employer
Payroll = regular recording and payment of employee benefits involves
recording the amount of wages or salaries for the pay period, updating personnel
records, remitting payment of net wages or salaries to employees, remitting
payment of deductions to various external parties and complying with regulations
Short-term liabilities
- Employment benefits (other than termination benefits) that are expected to be
settled wholly before 12 months after the end of the annual report period in
which the employees render the related service
- Monetary: Wages payable, sick leave, annual leave
- Non-Monetary: fringe benefits, health insurance, housing…
Post-employment benefits
- Includes: superannuation plans, employee retirement plans and pension plans
- Defined contribution plan where an employer contributes a certain amount
on a regular basis, and whether the benefits fluctuate to an amount is
dependent on the market. Such that, a percentage of the employees pay
check will go straight to the superannuation fund
- Defined benefit plan where a specified amount is promised by the employer
on retirement, that is predetermined by formula based on the employee’s
earnings history, tenure or service…
Employee benefits for past service cost
- The change in the present value of the defined benefit obligation for employee
service in prior periods, resulting from a plan amendment (introduction or
withdrawal of, or changes to, a defined benefit plan) or curtailment) a
significant reduction by the entity in the number of employees covered by a
plan)
Employee benefits for current service cost
- The increase in the present value of defined benefit obligation resulting from
employee service in the current period
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Document Summary
All forms of consideration given by an entity in exchange for services rendered by employees or for the termination of employment. A liability arises when employees provide employment services in exchange for benefits payable by the employer. Employment benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual report period in which the employees render the related service. Monetary: wages payable, sick leave, annual leave. Includes: superannuation plans, employee retirement plans and pension plans. Defined contribution plan (cid:0) where an employer contributes a certain amount on a regular basis, and whether the benefits fluctuate to an amount is dependent on the market. Such that, a percentage of the employees pay check will go straight to the superannuation fund. Defined benefit plan (cid:0) where a specified amount is promised by the employer on retirement, that is predetermined by formula based on the employee"s earnings history, tenure or service .
