Employee Benefits Flashcards
(12 cards)
Short term employee benefits
Short term employee benefits are employee benefits that I expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees rendered the related service
Accumulating compensated absences
Compensated absences that can be carried forward to future periods if the entitlement of the current period is not used fully
Non-accumulating compensated absences
A compensated absences that cannot be carried forward. Any utilised pay and will leave full laps at the end of the current period
Vesting benefits
Vesting benefits a benefits where employees are entitled to a cash payment for any unused entitlement upon leaving the entity
Non-Vesing benefits
Non-vesting benefits a benefits where employees are not entitled to a cash payment for any unused entitlement upon living the entity
Criteria for profit sharing and bonus plans to be recognised
The entity must have a present legal or constructive obligation to make such payments as a result of past events
And
A reliable estimate of the obligation must be possible
When is a reliable estimate made for profit sharing and bonus plans
-The formal terms of the plan container formula for determining the amount of the benefits
And
-The entity determines the amount to be paid before the financial statements are authorised for issue
Or
-past practice gives clear evidence of the amount of the entities constructive application 
Post employment benefits
Post employment benefits are employee benefits other than termination benefits which are payable after the completion of employment
Define contribution plans
A post employment benefits plans under which
An entity pays fixed contributions into a separate entity (fund)
And will have no legal or constructive obligation to pay further contributions
If the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior period 
Other long-term employee benefits
Are employee benefits (other than post employment benefits, termination benefits) which do not fall due wholly within 12 months after the end of the period  which the employees rendered the related service
Termination benefits
Termination benefits are employee benefits payable as a result of either
- an entities decision to terminate and employees or group of employees employment before normal retirement age
- an employees decision to accept voluntary redundancy and exchange for those benefits 
Defined benefit plans
Are post employment benefit plans other than defined contribution plans 
