IAS 19 employee benefits - a closer look

The International Accounting Standards Committee issued the the International Accounting Standard 19, Employee Benefits. The objective of IAS 19 is to is to prescribe the accounting and disclosure for employee benefits (that is, all forms of consideration given by an enterprise in exchange for service rendered by employees). The basic principle underlying all of the detailed requirements of the Standard is that the cost of providing employee benefits should be recognised in the period in which the benefit is earned by the employee, rather than when it is paid or payable. IAS 19 prescribes recognition, measurement and disclosure rules for expenses, liabilities and assets (for defined benefit funds only) relating to employee benefits. This article presents a closer look of standard (objective, scope, definitions, recognition, measurement and disclosures).