Page 231 - Group Insurance and Retirement Benefit IC 83 E- Book

180 AS 15

(b) as an expense, unless another Accounting Standard requires
or permits the inclusion of the contribution in the cost of an
asset (see, for example, AS 10, Accounting for Fixed Assets).

46. Where contributions to a defined contribution plan do not fall due
wholly within twelve months after the end of the period in which the
employees render the related service, they should be discounted using the
discount rate specified in paragraph 78.

Provided that a Small and Medium-sized Company, as defined in
the Notification, may not discount contributions that fall due more than
12 months after the balance sheet date.

Disclosure
47. An enterprise should disclose the amount recognised as an expense
for defined contribution plans.

48. Where required by AS 18 Related Party Disclosures an enterprise
discloses information about contributions to defined contribution plans
for key management personnel.

Post-employment Benefits: Defined Benefit Plans

49. Accounting for defined benefit plans is complex because actuarial
assumptions are required to measure the obligation and the expense and
there is a possibility of actuarial gains and losses. Moreover, the
obligations are measured on a discounted basis because they may be
settled many years after the employees render the related service. While
the Standard requires that it is the responsibility of the reporting enterprise
to measure the obligations under the defined benefit plans, it is recognised
that for doing so the enterprise would normally use the services of a
qualified actuary.

Recognition and Measurement
50. Defined benefit plans may be unfunded, or they may be wholly or
partly funded by contributions by an enterprise, and sometimes its
employees, into an entity, or fund, that is legally separate from the
reporting enterprise and from which the employee benefits are paid. The
payment of funded benefits when they fall due depends not only on the